The net available revenue of $4.7-billion is a record both for a fiscal year and for the month of June.
The full revenue report:
conclusion of fiscal year 2012.
The fiscal year ended above forecast as a result of growth across the three largest categories of collections: Individual Income Tax, Corporate Income Tax, and Gross Receipts (primarily Sales Tax). The Individual Income Tax gain of $59.5 million above forecast reflected further recovery in the economy during tax year 2011 as reported on tax filings in 2012. Gains were spread across estimated income tax and returns.
Withholding income tax growth was a moderate 4.2 percent above year ago levels and 1.1 percent above forecast. Corporate income Tax contributed $43.0 million above forecast in this volatile category of filings. The gain in gross receipts contributed $11.4 million above forecast. Sales and Use tax growth recovered in both consumer and business activity during the second half of the fiscal year, after a weak start in the first half. Individual Income Tax refunds exceeded forecast by $4.2 million while corporate income tax refunds were under forecast by $9.3 million.
Fiscal Year 2012 Gross General Revenues: Fiscal year 2012 gross collections total $5.9 billion, representing an increase of $250.8 million or 4.4 percent above last year. Gross general revenues are $125.8 million or 2.2 percent above forecast.
Fiscal Year 2012 Individual Income Taxes: Fiscal year 2012 individual income tax collections total $2.8 billion, $156.2 million or 5.7 percent above FY 2011 collections and $59.5 million or 2.1 percent above forecast. Collections for individual withholding, the largest component of individual income tax, were $2,278.9 million, representing a 4.2 percent increase over last year.
Fiscal Year 2012 individual income tax refunds total $493.3 million, $24.7 million or 5.3 percent above last year and $4.2 million or 0.9 percent above forecast.
Fiscal Year 2012 Gross Receipts Collections: Gross receipts consist primarily of sales and use taxes. Fiscal year 2012 gross receipts total $2.1 billion, an increase of $56.1 million or 2.7 percent over FY 2011 and $11.4 million or 0.5 percent above forecast. Gains in sales tax collections relative to FY 2011 reflect further economic recovery in consumer and business activity.
Fiscal Year 2012 Corporate Income Taxes: Fiscal year corporate revenues total $435.3 million, an increase of $43.7 million or 11.2 percent above FY 2011. Collections came in $43.0 million or 11.0 percent above forecast.
Fiscal Year 2012 Corporate income tax refunds total $56.7 million, $15.9 million or 38.9 percent above last year and $9.3 million below the general revenue forecast. Amounts below forecast in refund categories contributed to higher net available revenue.
June Net Available General Revenues total $509.6 million, $35.8 million or 7.6 percent above last year and $132.3 million or 35.1 percent above forecast. Net and gross revenues for June include excess collections from the first 10 months of FY 2012 prior to the forecast revision.
Net available funds were boosted by gains in estimated payments in both Individual and Corporate Income. Sales tax collections (gross receipts) exceeded forecast and year ago benchmarks. The gain in income tax collections offset a rise in individual income tax refunds for the month relative to forecast. Individual income tax withholding also exceeded forecast and year ago levels.
June Gross General Revenues: June collections total $581.5 million, an increase of $29.9 million or 5.4 percent above last year and $118.2 million or 25.5 percent above forecast.
June Individual Income Tax collections total $253.8 million. Collections increased by $18.5 million, or 7.9 percent, compared to last year. With respect to the forecast, collections are $61.4 million or 31.9 percent above forecast. Gains in estimated payments of 11.7 percent year-over-year accounted for much of the growth, while withholding grew by 6.4 percent.
June Individual Income Tax Refunds total $20.4 million. This amount is $4.4 million or -17.6 percent below year ago refunds and $8.2 million above forecast for the month.
June Gross Receipts Collections: June collections total $180.8 million, an increase of $14.4 million or 8.6 percent from last year. Collections exceeded monthly forecast levels by $9.1 million or 5.3 percent.
June Corporate Income Tax collections total $81.8 million, an increase of $8.8 million or 12.1 percent from year earlier levels, and $39.9 million or 95.1 percent above forecast.
June Corporate Income Tax Refunds total $1.5 million. This amount is $4.0 million or -72.6 percent below year ago refunds.
June Tobacco Tax collections, a small component of general revenue, total $19.6 million or 0.1 percent above year earlier levels.
Fiscal Year 2012 Soft Drink Tax (for Medicaid Program Trust Fund): Fiscal year 2012 collections of the dedicated soft drink tax total $46.8 million, an increase of $0.3 million or 0.7 percent from last year.
Educational Adequacy Fund: Act 107 of the Second Extraordinary Session of 2003 increased the state sales and use tax rate from 5.125% to 6.0%, effective March 1, 2004. Effective July 1, 2004 a new sales tax on selected services went into effect in addition to an increase in vending machine decal fees. Act 94 increased the minimum corporate franchise tax and the tax rate, effective for calendar years beginning January 1, 2004.
The additional revenues are deposited as special revenues to the Educational Adequacy Fund to be used to fulfill the financial obligations of the state to provide an adequate educational system. In June 2012, $40.5 million was collected and deposited to the fund. After deductions, the net amount is $39.2 million. The monthly collection is equivalent to an 11.5 percent increase from prior year collections. Fiscal year net collections total $438.1 million, compared to $428.7 million last year. This represents a 2.2 percent fiscal year increase from prior year collections.