December Individual Income Tax Collections Lower Than Expected

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The Division of Financial Management released its monthly general fund revenue report today with mixed news.  First the good, sales tax collections exceeded expectations for the month of December, due in large part to the holiday shopping season.

“Idaho gross sales tax collections in December were $94.9 million, an increase of 9.0% over the previous December. On a fiscal year-to-date basis, gross sales tax collections are up 4.0% from the same period last fiscal year. The amount of sales tax accruing to the General Fund in December 2011 was $81.6 million, which was $2.0 million more than the forecast.” – DFM Report

Now the not-so-good, individual income tax collections came in $3.4 million short of projections.  DFM Administrator Wayne Hammon says “to be off gives us a little bit of pause.”

“December filing collections were $5.9 million under the $37.5 million predicted amount. Readers are reminded, however, that this month’s results may be distorted by December filing payments being recorded in January. The $5.9-million gap was partially reduced by other components of the individual income tax. Withholding collections of $87.4 million were $0.8 million more than had been expected.  Refunds once again came in below its projection, $3.2 million versus $4.8 million.” – DFM Report

The monthly report also includes an updated revenue forecast for the current fiscal year, FY 2012.  DFM is projecting Idaho’s general fund will end the year in June at $2,552.6 million, that’s down from its August forecast of $2,601.3 million.