Secretary of Administration Announces VT’s July Revenue Figures

first_imgSecretary of Administration Michael K. Smith today released General Fund revenue results for the month of July, the first month of Fiscal Year 2009.  General Fund revenues totaled $96.66 million for July 2008, +$8.07 million or +9.11% above the $88.58 million consensus revenue forecast for the month and year-to-date.The monthly targets reflect the most recent Fiscal Year 2009 Consensus Revenue Forecast that was agreed to by the Emergency Board on July 29, 2008.  The State’s Consensus Revenue Forecast is normally updated two times per year in January and July.  However, with the uncertainty of the national economy, the Emergency Board is considering an interim review of the Consensus Revenue Forecast in November, 2008.Personal Income Tax receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds.  Personal Income Tax receipts for July were $52.20 million, +$5.42 million or +11.58% ahead of the monthly target.  Sales & Use Tax and Rooms & Meals Tax receipts were above target for July.  Sales & Use Tax exceeded target by +$0.87 million (+4.39%) and Rooms & Meals Tax was +$0.38 million (+3.82%) above target for July.  Smith said, “Personal Income Tax receipts reflect prior year economic conditions and are not necessarily an indicator of future performance.”  Offsetting the above target performances already mentioned, Corporate Income Tax receipts of $1.89 million fell below target for the month by -$0.69 million or -27.13%.  “We remain cautious regarding the performance of the consumption taxes in the current economic environment,” noted Secretary Smith.The remaining tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and “Other” (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage tax, Fees, and Other Taxes).  Cumulatively, these components totaled $11.59 million vs. the target of $9.50 million.  “Although the first month of Fiscal Year 2009 is above target, July is an odd month – a poor predictor for the fiscal year end results.  Consequently, we remain watchful,” Secretary Smith said.                   Transportation FundSecretary Smith also reported on the results for the non-dedicated Transportation Fund revenue.  “The Transportation Fund revenue was $16.36 million, which was -$0.05 million or -0.30%, below the monthly target for July,” said Smith.Revenue from the Gasoline Tax, Diesel Tax and Other Fees were all below target in the month of July.  Motor Vehicle Purchase & Use Tax and Motor Vehicle Fees were both above target.  The Transportation Fund revenue results for July were: Gasoline, $4.90 million or -6.25% below target; Diesel Tax, $1.28 million or -11.06% below target; Motor Vehicle Purchase & Use Tax, $3.49 million or +3.46% above target; Motor Vehicle Fees, $5.33 million or +6.43% above target; and Other Fees, $1.36 million or -0.23% below the monthly target.  The cumulative July 2008 Transportation result of $16.36 million was +$0.81 million, or +5.21% above July 2007.Education FundSecretary Smith released revenue results for the “the non-Property Tax” Education Fund revenues (which constitute approximately 12% of the total Education Fund receipts).  “The Education Fund receipts totaled $13.12 million for the month of July, or +$0.49 million above the $12.63 million consensus revenue target for the month,” said Smith.  The Secretary stated, “The portions of the Education Fund derived from the consumption taxes, namely the Sales & Use Tax and the Motor Vehicle Purchase & Use Tax, both exceeded the July target, while Lottery receipts were on target at $1.0 million.       ConclusionSecretary Smith concluded that “July is a relatively low revenue month and is historically a poor predictor of the year to come as a whole.  We will continue to monitor future revenues closely,” said Smith.  “Well, not me, but others will monitor the revenues closely,” Smith concluded. Secretary Smith retires on August 22, 2008.To view the entire release click herelast_img

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