March 17, 2020
Yesterday, the state’s Economic and Revenue Forecast Council (ERFC) released its monthly report on state general fund revenue collections for March. For the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest, this report covers payments received between February 11 and March 10, which generally relate to transactions that occurred in the month of January. For liquor taxes, cigarette tax, property tax, real estate excise tax, unclaimed property and other sources, the report covers payments received between February 1 and February 29.
The total amount received was $1,517.7 million. This was $9.6 million (0.6%) more than the amount that had been forecast. Real estate excise tax (REET) was $14.1 million (34.0%) more than the forecast amount. All other sources together were $5.5 million less than the forecast amount. Most of the REET derived from closings that occurred in February, pursuant to purchase and sale agreements signed a period of time before the closing date.
For retail sales tax, business and occupation tax and other excise taxes, taxpayers pay either monthly, quarterly or annually, depending on the taxpayer’s amount of annual income. The slowdown in economic activity due to COVID-19 really started in early March. For monthly and quarterly taxpayers, taxes on March activity will be remitted to the state in April and will be reported in ERFC’s Economic and Revenue Update for May. It will thus be two months before we see the effect of COVID-19 on state revenues.Categories: Budget , Categories , Economy.