Vermont Tax Revenues Off Nearly 10 Percent

Vermont Business Magazine – The Personal Income tax, by far the state’s most important General Fund revenue source, was below its target by over $25 million for April. The PI had been running ahead of annual projections, but has now fallen over $11 million behind with only two months left in the fiscal year. The Sales and Rooms & Meals taxes also were below targets. The only component now ahead for the year is the Corporate tax, which was up for the month over 34 percent and for the year nearly 19 percent.

Overall, General Fund revenues collected for the month of April totaled $201.10 million, which is -$21.65 million, or 9.7 percent, below the consensus monthly revenue target adopted by the Emergency Board on January 19, 2017, according to Secretary of Administration Susanne Young. The poor performance in April was driven by a -$25.34 shortfall in the Personal Income Tax. The Corporate Tax for April finished ahead of projections by +$3.94. April marks the 10th month of FY2017.

Through these first 10 months, total receipts for the General Fund are -$3.55 million below projections, or $1,237.75 million against a target of $1,241.30 million. This does not take into account up to $16 million of pending Corporate Tax refund requests currently under review.

“We knew that our revenue picture for the fiscal year would come into focus at the end of April,” said Young. “Unfortunately, while we ended March with a $18.1 million positive position, the April revenue downturn has moved us to a net negative $3.5 million position.”

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Vermont Business Magazine, May 4, 2017