April 27, 2015 Tax Commission’s revenue report describes lightly weakening, but overall strong, revenue picture
The Tax Commission’s 9-month revenue report came out yesterday described a picture of slightly weakening, but overall still strong revenues.
State sales tax (cumulative, fiscal year 2015) growth slipped from 4.5% to 3.8% for the first 9 months of FY2015. For the month, state sales taxes fell 2.7%. But we note that the sales tax earmark for the Transportation Fund’s” 30% Sales Growth Diversion” rose 85.1%, $12.4 million this month, to $96.4 million during the first 9 months (compared to $84 million last year).
Indicating continued strong growth in Utah wages, the State’s withholding tax is up 6.2% during the first 9 months of FY2015. Overall, individual income taxes are up 7.6% this year compared to the 5% forecast made in February. Corporate income taxes are up 22.5% in the first 9 months, compared to the February forecast of 18.8%.
Motor fuel taxes are up nearly 3% in the first 9 months, indicating increased driving due to lower gasoline prices. This should help our B&C distributions.
Finally, the local 1% sales tax was up 2.7% for the month and 4.0% for the first 9 months of the State’s fiscal year at $389.4 million (this is found in a detailed report not below). The County 0.25% tax is up 3.6% for the first 9 months of FY2015.