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Fiscal year off to very different start from last

  

JEFFERSON CITY, Mo. — The latest revenue numbers for the state have been released, and the numbers are starkly different from one year ago.

State Budget Director Dan Haug announced last week that fiscal year-to-date net general revenue collections increased 6.5 percent compared to 2018, from $2.17 billion last year to $2.31 billion this year.

The increase is in distinct contrast to last year when budget hawks were watching sharp decreases. For the same time period last year, general revenue collections had decreased by 3.2 percent.

While revenues ultimately bounced back in the spring for fiscal year 2019 — a trend former Director of Revenue Joel Walters called the “new normal” — the current budget year is off to a different start.

“Hopefully this year is sort of our new normal so that when we start comparing next year, we can compare apples to apples,” Haug told The Missouri Times.

Overall, net general revenue collections for September 2019 increased 2.5 percent compared to those for September 2018, from $895.2 million last year to $917.3 million this year.

Here’s the breakdown of gross collections by tax type for FY 2020:

Individual income tax collections

  • Increased 1.9 percent for the year, from $1.57 billion last year to $1.60 billion this year
  • Decreased 1.2 percent for the month

Sales and use tax collections

  • Increased 6.5 percent for the year, from $547.9 million last year to $583.7 million this year
  • Increased 7.3 percent for the month

Corporate income tax collections

  • Increased 26.6 percent for the year, from $109.6 million last year to $138.8 million this year
  • Increased 18.3 percent for the month

All other collections

  • Increased 7.3 percent for the year, from $110.3 million last year to $118.4 million this year
  • Increased 9.0 percent for the month

Refunds

  • Decreased 23.1 percent for the year, from $167.3 million last year to $128.7 million this year
  • Increased 4.0 percent for the month

Comparing this year to last year isn’t exactly comparing apples to apples, Haug added.

For FY 2019, general revenue collections lagged significantly and then bounced back as tax returns were filed.

Net general revenue collections for 2019 fiscal year-to-date were down 7 percent at the end of January and down 4.3 percent at the end of March. Yet, collections in April 2019 alone increased 46.5 percent compared to those for April 2018.

And the same trend is unlikely to carry on for FY 2020, Haug predicted. So far, general revenue collectionss have not been down like last year and he doubts April will bring in the huge haul again.

“I think we are sort of where we should be to hit our [consensues revenue estimate],” Haug said.