State receipts continue on upward climb

Published 4:24 pm Monday, December 12, 2022

State Budget Director John Hicks reported Monday that General Fund receipts rose 5.3% in November compared to last year, while during the same time the Road Fund saw a 6.2% increase.

General Fund revenue for the month was $1,231.6 million, the third consecutive month it has surpassed $1 billion. Receipts have now risen 6.4 percent for the first five months of the fiscal year. When adjusting for the one-time legal settlement received in September of Fiscal Year 2022, General Fund receipts have risen 10.8% through the first five months of FY23.

“November and year-to-date collections continue to exceed the budgeted revenue estimates,” said State Budget Director John Hicks. “The 5.3% growth rate for the month was spearheaded by 9.4% growth in sales and gross receipts taxes. In addition to the 8.5 percent growth in the sales and use tax, many of the excise taxes had strong, double-digit months of growth.  Individual income tax receipts were mixed as solid withholding growth of 3.4% was offset by refunds distributed to taxpayers following the October 15 deadline for extended filers.”

Road Fund receipts for November totaled $142.3 million, a 6.2% increase from November 2021.  Motor fuels tax receipts grew 1.1% in November and are up 0.9% for the year. Year-to-date increases in motor fuels are strictly due to increases in gallons sold, which are aided by lower motor fuels prices and the FY23 freeze on motor fuels tax rates.  Motor vehicle usage tax collections rose 6.1% in November and have grown 3.8% through the first five months of the fiscal year.  License and privilege receipts grew 7.4% for the month and have risen 2.1% for the year.
Given the strong year-to-date performance of the General Fund, the state’s Consensus Forecasting Group is scheduled to convene on Wednesday o revise the FY23 and FY24 official General Fund estimates.

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