Last monthís receipts, which ended fiscal year 2005, showed a large increase of $43.5 million compared to June 2004. In total, fiscal year 2005 receipts exceeded the Revenue Estimating Conferenceís (REC) estimate by nearly $78 million. In April 2005, the REC estimated that FY 2005 would see an increase of $214.6 million, or 4.1 percent growth, in state receipts. Actual year-to-date revenues have increased by 6.8 percent, or $311.7 million, as compared to FY 2004. The final numbers on FY 2005 will not be in until the books are closed late September, but unlike other years the stateís budget has some wiggle room for the unexpected.
Gross personal income tax revenues received in June totaled $216 million, an increase of $12.4 million, (6.1 percent) compared to June 2004. For the fiscal year, income tax receipts increased by 7.3 percent. The REC estimated a 6.1 percent growth in personal income tax for FY 2005. Withholding receipts in June dropped for the second time. May and June withholding receipts decreased $27.4 million (-7.2 percent). This is the only troubling spot in the sea of good news. Changes in the withholding tables implemented in April are expected to reduce tax revenues, but this drop exceeds the projected impact of the table changes. This will be something to watch for in the coming fiscal year.
Sales tax revenues received in June totaled $151.6 million, an increase of $24.6 million (19.4 percent) compared to June 2004. Juneís increase compensates for a drop in May due to a large amount of receipts received in May and not deposited until June. For the fiscal year, sales tax receipts increased by 4.6 percent. The REC estimated an increase in sale tax receipts of 3.8 percent for FY 2005.
Corporate income tax receipts in June totaled $44 million, an increase of $4.7 million (12.0 percent) compared to June 2004. For the fiscal year, corporate income tax receipts increased by 19.6 percent. The REC estimate equals an increase of 8.2 percent for FY 2005.
Finally, other tax receipts in June totaled $63.4 million, a decrease of $9.4 million (-12.9 percent) compared to June 2004. For the fiscal year, other tax receipts decreased by 3.0 percent. The REC estimated a decrease of other tax receipts of 3.7 percent for FY 2005.
Tax refunds paid from July 1, 2004 through June 30, 2005 totaled $702.9 million, a decrease of $0.6 million (- 0.1 percent) compared to the previous year. Refunds issued during the cash year were approximately $18.0 million higher than projected by the REC.
