Tax Collections Fall Slightly in November, Up Just 1% in FY 2012-13
State tax collections dipped slightly in November, according to the monthly report issued last week by the Wisconsin Department of Revenue (DOR). That’s the second straight month that state tax revenue has been a little lower than it was 12 months earlier.
For the first five months of fiscal year 2012-13, DOR reports revenue growth of just 1.0%. Fortunately, General Fund taxes only need to grow by 1.2 percent ($160 million) during the current fiscal year to reach the revenue level projected in May 2012.
The somewhat odd thing about the tax data so far in this fiscal year is how uneven the changes are between different types of taxes. Over the first five months of 2012-13, income tax revenue has grown by 2.8% and sales tax revenue is up 1.7%, but the other three large categories of tax revenue are down substantially. Corporate income tax collections are off by 8.5%, excise taxes have dropped by 5.1%, and a category called “other” – which includes estate and utility taxes and real estate transfer fees – has fallen by 7.3%.
In a month or so we’ll take a look at how the revenue collected in the first half of the year compares with the projections for 2012-13 for each of the tax categories, and we’ll compare the Wisconsin trends with other states. And in the meantime we’ll review the downward pressure on taxes from numerous phased-in tax cuts that will take a bigger bite out of tax revenue in 2013 and 2014.