Corporate, Income and Sales Tax Collections Lower Than Expected in November

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The Division of Financial Management today reported Idaho’s main bank account was $5.4 million below November’s forecast.  DFM attributes the monthly shortage to weak individual income taxes and sales taxes.  Idaho’s sales tax collections have missed projected targets every month this fiscal year.

“This month’s performance not only missed its forecast, but it was 4.1% lower than it was in November 2010. On a fiscal year-to-date basis, the sales tax trails its forecast by $18.9 million. This category’s recent string of sub-par showings has raised concerns whether the sales tax will be able to recover enough to meet its targets during the important holiday shopping season.”

The Division of Financial Management reports November’s corporate income taxes came in below expectations for the first time in three months.

“November is traditionally a month of large corporate income tax refunds, but actual payouts were even larger than expected—$5.0 million instead of $4.6 million. But refunds were not the sole reason for the corporate income tax’s negative showing in November. Filing collections were about $0.6 million below its forecast, $1.9 million versus $2.4 million.  Adding to this month’s shortfall was the nearly $0.1-million gap between actual and forecasted estimated payments. Despite this month’s retreat, the fiscal year-to-date corporate income tax exceeds its forecast by $1.5 million.”