State Announces Strong Tax Revenue Results for March

by Timothy McQuiston, Vermont Business Magazine While refunds kept vital personal income tax from posting an even stronger month, taxes on corporations, gas, rooms and meals pushed the state’s monthly revenue well above beyond March targets. Saying the state is in “good shape,” Secretary of Administration Kristin Clouser released the monthly tax receipts and YTD today. They show that General Fund, Transportation Fund and Education Fund revenues were combined by $239.9 million, or 8.9%, above the upwardly revised monthly consensus expectation.

Year-to-date, General Fund and Education Fund revenues are above target, while the Transportation Fund is slightly below target. Cumulative revenue was 1.2% above revised consensus expectations in the third quarter of the state’s fiscal year, which ends June 30, 2022.

General Fund revenue collected for the month totaled $162.6 million, or $15.9 million above the consensus monthly treasury revenue target. For the year to date, General Fund income was $1,336.2 million, exceeding its target of $19.8 million or 1.5%.

This month’s performance in the general fund was supported by a small net gain in the personal income category and larger gains in corporate taxes and meal and room taxes.

Personal income was supported by upbeat revenue activity in withholdings and estimated tax payments, but surprisingly strong refund activity again moderated overall gains in this category last month.

Consumption taxes, which generally follow travel and tourism, were strong, meals and room (+22%), gasoline (+23.17) and sales and use (2.9 %) beating combined expectations of $5.92.

Revenue from the Transportation Fund beat expectations, bringing in $26.7 million in March versus the consensus cash flow estimate of $25.1 million. Year-to-date, the T-Fund returned $209.6 million, $1.4 million or 0.7% below the consensus cash flow target.

The performance of T-Fund revenue better than consensus expectations in March confirms the rebounding nature of revenue activity given the “short month” effect of February on all components of T-Fund revenue.

A good portion of the fuel tax transactions that would normally have been posted before the end of February “spilled over” into March. As a result, March revenue exceeded targets and helped offset last month’s lag.

Education Fund revenue came in at $2.2 million, or 4.5%, above the consensus monthly cash flow target, after raising $50.7 million in March. For the first three quarters of the fiscal year, the Ed Fund received $508.0 million, or 1.1% above the consensus cash flow target.

Monthly Ed Fund receipts continued to reflect underlying strength in household consumption activity – particularly in e-commerce activity – which supported commodity tax payments from tax payers. e-commerce.

The top three state funds total $23.8 million before consensus revenue estimates approach the crucial April income tax filing deadline.

Secretary Clouser said, “Combined March revenues more than offset February’s slight decline, and despite all the uncertainty in the global economy and business, Vermont enters the final quarter of the fiscal year in good shape. from a revenue point of view. .”

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