The State Budget Agency recently released the monthly revenue report for the state tax collections in December 2012 and boasted a total revenue of $1.191 trillion – $22 million above target, and $24 million above collections for the same period last year.
Sales tax collections came to a total of $549 million for December, another increase over last year by $20 million. However, individual income tax collections were down 3.2 percent, totaling only $323 million – $10 million less than the same period last year. Officials attribute this to a large transfer to the local option income tax reserve.
Payroll withholdings increased 16.5 percent over this time last year, due in part to an extra payroll withholding. Corporate income tax collections totaled $185 million for the month, $30 million above target and $32 million above collections for the same time last year.
Through the first six months of fiscal year 2013, state general fund revenues have increased 3.1 percent, coming out to more than double the rate needed to meet the most recent forecast. Through December, individual income tax collections increased 4.7 percent over last year’s same six-month period, even after $91 million was transferred into the local option tax reserve this month.
Officials predict this reserve will smooth out fluctuations in the state’s individual income tax revenue collections and provide a first layer of protection when the economy next turns down.