Vermont revenues show gain, still sluggish

first_imgVermont’s tax revenues exceeded targets for the General Fund and Transportation Fund, but the Education Fund fell below its target for the month as revenues, in general, continue to show a slow recovery from the severe, three-year-old economic downturn.General FundSecretary of Administration Neale F. Lunderville released the August 2010 General Fund Revenues today. August is the second month of fiscal year (FY) 2011. General Fund revenues totaled $81.70 million for August 2010, and were +$7.30 million or +9.81% above the $74.41 million consensus revenue forecast for the month. Year-to-date General Fund performance of $163.92 million was +$3.69 million, or +2.30% ahead of year to date target of $160.24 million.“We are pleased to have exceeded the August monthly and year-to-date General Fund targets,” said Secretary Lunderville. “However, it is worth noting that without unexpected Bank Franchise tax settlement activity in August, we would still be behind target on a year-to-date basis by approximately $1.25 million. The Bank Franchise tax revenues for August were $5.0 million, or $4.9 million above the monthly target.”The monthly targets reflect the revised Fiscal Year 2011 Consensus Revenue Forecast approved by the Emergency Board at their July 14, 2010 meeting. Statutorily, the State is required to revise the Consensus Revenue Forecast two times per year, in January and July; the Emergency Board may schedule interim revisions if deemed necessary. The next Emergency Board meeting will be scheduled for January 2011.Personal Income Tax (PI) receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds. Personal Income Tax receipts for August were recorded at $34.64 million, or +$2.24 million or +6.93% above the monthly target of $32.39 million.Corporate Income Taxes for August, which are also reported net-of refunds, were recorded at $1.56 million against a target of $.81 million, or +$0.75 million (+92.72%) above target.The consumption taxes struggled slightly for the month slipping below target for August; Sales & Use Tax receipts of $16.16 million were below target by -$0.28 million (-1.69%), while Rooms & Meals Tax receipts of $11.42 million fell slightly below target by -$0.01 million (-0.12%).The year to date results for the four major General Fund categories are as follows: Personal Income Tax, $77.91 million (+0.33%); Sales & Use Tax, $36.04 million (-0.25%); Corporate, $0.75 million (-69.05%); and Meals & Rooms Tax, $21.49 million (+0.43%).The remaining tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and “Other” (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage Tax, Fees, and Other Taxes). The results for the month of August were as follows: Insurance Tax, $7.51 million (14.38%); Estate Tax, $1.22 million (10.99%); Property Transfer Tax, $0.62 million (-17.47%); and “Other”, $8.58 million (+74.46%). The majority of the favorable results in the “Other” category were due to extraordinary settlement activity for the month in Bank Franchise Taxes. Year to date results for these categories were: Insurance Tax, $7.79 million (12.75%); Estate Tax, $2.12 million (-13.31%); Property Transfer Tax, $1.37 million (-14.12%); and “Other”, $16.45 million (+40.88%).Transportation FundSecretary Lunderville also reported on the results for the non-dedicated Transportation Fund Revenue for August. Total non-dedicated Transportation Fund receipts of $19.61 million for the month exceeded target by +$0.16 million (+0.85%), against the monthly target of $19.44 million. The year to date non-dedicated Transportation revenue was $35.18 million versus the target of $35.14 million (+$0.04 million, +0.11%).Individual Transportation Fund revenue receipts components for August were: Gasoline Tax, $5.71 million or +1.01% above target; Diesel Tax, $1.44 million or +10.87% above target; Motor Vehicle Purchase & Use Tax, $4.19 million or -11.75% short of target; Motor Vehicle Fees, $6.53 million or +5.37% above target; and Other Fees, $1.75 million or +12.33% ahead of the monthly target. The August year to date Transportation Fund revenue results were: Gasoline Tax, $10.85 million or -0.01% short of target, Diesel Tax, $2.14 million or +2.66% ahead of target; Motor Vehicle Purchase & Use Tax, $7.40 million or -8.23% below target; Motor Vehicle Fees, $12.04 million or +6.85% above target; and Other Fees, $2.75 million or -4.32% short of target.Secretary Lunderville also reported on the results for the Transportation Infrastructure Bond Fund (“TIB”). TIB Fund Gas receipts for August were $1.46 million or -0.06% short of target; year to date receipts of $2.79 million were -4.31% below target. TIB Fund Diesel receipts were $0.24 million or +53.39% above target for the month; year to date TIB Diesel receipts were $0.33 million or +29.14% ahead of target. TIB Fund receipts are noted below the following table:Education FundThe preliminary “non-Property Tax” Education Fund revenues (which constitute approximately 11.9% of the total Education Fund sources) were released today by Secretary Lunderville. The non-Property Tax Education Fund receipts for August totaled $11.80 million, or -$0.41 million (-3.33%) below the $12.20 million target for the month. The less that favorable results in General Fund Sales & Use Tax receipts and Transportation Fund Motor Vehicle Purchase & Use were mirrored in the Education Fund receipts for those components. Year to date Education Fund revenues were $24.34 million or -1.48% behind the year to date target of $24.71 million.The preliminary individual Education Fund revenue component results for August were: Sales & Use Tax, $8.08 million, or -0.14% below target; Motor Vehicle Purchase & Use Tax, $2.10 million or -11.75%; Lottery Transfer, $1.61 million or +0.23%; and Education Fund Interest, essentially $0.00 million against a target of less than $0.01 million. Year-to-date results were: Sales & Use Tax, $18.02 or -0.26%; Motor Vehicle Purchase & Use Tax, $3.70 million or -8.23%; Lottery Transfer, $2.61 million or +0.14%; and Education Fund Interest, $0.01 million (percent not meaningful).Conclusion“The momentum of the economic recovery has slowed. The labor and housing markets continue to be weak; consumer confidence, while constrained, has improved slightly. Compared to prior fiscal years, August year to date results for fiscal year 2011 have exceeded fiscal year 2010, but remain 1.6% below fiscal year 2009 and 4.7% below fiscal year 2008 for the same two-month period. The current forecast does not project a return to fiscal year 2008 revenue levels until fiscal year 2013.”Source: Lunderville. 9.17.2010last_img

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