Friday, December 07, 2018
NOTES FROM THE SENATE, DECEMBER 7, 2018
COMPARISONS, YEAR TO DATE REVENUES EXCELLENT DESPITE NOVEMBER DECLINE
While the November revenues came in slightly negative at -0.7%, comparisons to other states from October and Year to Date numbers continue to be outstanding.
Year to Date Revenues Year Over Year-July-October
North Carolina 7.2%
West Virginia 13.5%
GEORGIA'S YEAR TO DATE GAIN STILL HEALTHY 6.9%
Even with November's slight dip in revenues, the level of increase in revenues compared to last year continues to be robust, at 6.9%. Total revenues for the month were $1.83 billion, decreasing $13.1 million.
Year to Date revenues total $9.66 billion, an increase of $619.4 million.
INDIVIDUAL INCOME TAXES DOWN 2.4%
Inside this category, Refunds were up $4.8 million while Withholding Payments were down $10.9 million. Individual Income Tax Returns were down $3.1 million.
Corporate Income taxes were up 11.9% with refunds up $3.4 million and Income Tax Returns up $3.8 million.
SALES TAX- A BRIGHT SPOT
Adding to its streak, net sales taxes were up 4.9% on revenues of $488.7 million. Sales Tax gains reflect consumer confidence and should show strong improvement for this busy holiday shopping season, based on national data from retailers.
OTHER CATEGORIES COMBINED MADE NO IMPACT
Tobacco taxes were down -6.4% while Alcohol Beverages increased 9.7%. Tag, Title and Fees were up at 13.4% but Title Ad Valorem taxes were down at -4.4%.
TRANSPORTATION- GASOLINE TAXES/FEES UP 2.9% FOR NOVEMBER
We track the excise taxes on motor fuel and the two fees since those revenues go straight to transportation. This month, Excise Taxes were up 2.5%, Highway Impact Fees increased $330,000 and Motel/Hotel Fees increased $820,000. Altogether Motor Fuel taxes and fees were up $5 million or about 2.9%.
FISCAL YEAR NUMBERS KEEPING PACE
Overall, the figures show a healthy 6.9% revenue gain despite some slip in November. Total revenues stand at $9.6 billion, showing an increase of an impressive $619.4 million. Individual Income Taxes are growing at 7.6% and Corporate Taxes at 36.2% ahead of this same time last year. Net Sales Taxes are showing a very strong 7.1% increase.
OTHER CATEGORIES MIXED
Tobacco Taxes are up slightly at 0.9% and Alcoholic Beverages are negative at -0.5%. Tag, Title and Fees are slightly positive at 1.6% while Title Ad Valorem Taxes are negative at -7.1%.
FUEL TAX REVENUE STAYING ON TREND
Motor Fuel Excise taxes, Impact Fees and Hotel/Motel Fees all continue growing, a total of $862.2 million. This is an increase of $24.7 million or about 3.0%.
DESPITE SPECIAL SESSION ADJUSTMENT, MAKING BUDGET
With the adjusted revenue estimates for the Special Session in November, the state's revenue increases are still much ahead of budget. After five months of the fiscal year, revenues exceed the state's 2019 budget by some $276.3 million.