October 15, 2021
The monthly report on general fund revenue collections from the state’s Economic and Revenue Forecast Council (ERFC), which was issued this morning, shows overall revenues above forecast.
For the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest (collectively the Revenue Act receipts), this report covers payments received between September 11 and October 10, which generally relate to transactions that occurred in the month of August.
For liquor taxes, cigarette tax, property tax, real estate excise tax, unclaimed property and other sources, the report covers payments received between September 1 and September 30.
The total amount received was $2,015.5 million, $152.7 million (8.2%) more than the amount expected under the (upwardly revised) forecast that ERFC adopted just three weeks ago.
Revenue Act taxes (primarily the sales, use, utility, and business and occupation taxes) were $79.8 million (4.9%) above the amount forecasted. Here is a chart showing seasonally adjusted Revenue Act receipts since 2004:
Non-Revenue Act taxes exceeded forecast by $73.1 million (31.2%). Within this grouping, real estate excise tax (REET) exceeded forecast by $69.1 million (50.8%). ERFC staff note:
The largest contributor to this month’s surplus was once again real estate excise tax (REET) …. The variance was mainly due to sales of large commercial property (property valued at $10 million or more), which jumped to $3.23 billion after last month’s [upwardly] revised total of $1.84 billion. Seasonally adjusted taxable activity jumped to a new all-time high.
Here is a chart showing the value of transactions subject to REET since 2002:
The collections report is available here.Categories: Budget , Economy.