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Total revenues rise during month of November over previous year, state budget director reports

State Budget Director John Chilton reported Monday that General Fund receipts rose 2.9 percent in November compared to last year. Total revenues for the month were $907.8 million, compared to $882.5 million during November 2016, an increase of $25.3 million. Receipts have now risen 1.1 percent for the first five months of the fiscal year and must increase 3.1 percent over the final seven months of FY18 to achieve the official revenue estimate of $10,718.8 million.

Chilton noted that revenue growth was inconsistent in November as most of the revenue gain came from a single source. “Sales and gross receipts revenue, led by the sales and use tax, was particularly strong in November, increasing 5.2 percent. After declining 1.3 percent in the first two months of the fiscal year, sales tax collections have grown 5.5 percent in the last three months. On the flipside of the ledger, individual income tax withholding collections have now fallen for two consecutive months, thereby negating the sudden surge in the sales and gross receipts collections.”

Among the major accounts:

• Corporation income tax receipts rose $1.2 million in November. Receipts year-to-date have declined 7.4 percent.

• Individual income tax collections grew 0.8 percent in November as a decline in the individual income tax withholding component offset gains in the three remaining components of income. Through the first five months of FY18, collections in this tax have increased 1.3 percent.

• Sales and use tax receipts increased 5.8 percent in November, the third consecutive month in which growth has exceeded 5 percent. Year-to-date, this account has grown 2.7 percent.

• Property tax collections rose 2.8 percent for the month but have decreased 7.9 percent year-to-date.

• Cigarette tax receipts fell 7.9 percent in November and are down 7.5 percent for the first five months of the fiscal year.

• Coal severance tax receipts declined 22.4 percent in November and are down 4.4 percent year-to-date.

• Lottery revenues rose 2.4 percent for the month but are down 2.2 percent for the year.

Road Fund receipts for November totaled $124.1 million, a 1.6 percent decrease from November 2017 levels. Year-to-date Road Fund receipts have fallen 0.7 percent. Based on collections through the first five months, Road Fund receipts can fall 2.9 percent over the balance of the fiscal year to meet the official FY18 estimate of $1,478.2 million.

Motor fuels tax receipts grew 2.5 percent in November and are now flat for the year. Motor vehicle usage tax collections declined 3.3 percent in November; year-to-date collections have decreased 2.4 percent. License and privilege receipts fell 14.6 percent for the month while nontax receipts grew by $1.4 million.

From Office of State Budget Director

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