State Tax Collections In June Resulted In FY 2018-19 Ending With Revenues $883.1 Million Above Estimates

On July 1, the Department of Revenue reported state tax collections in June resulted in FY 2018-19 ending with revenues $883.1 million or 2.6 percent above estimates.  

[Note: Revenue above estimates is not the same as a true surplus since this revenue was used to pay for higher than anticipated expenses in FY 2018-19, to balance the budget in FY 2019-20 and to make a deposit in the Rainy Day Fund.]

General Fund collections for June totaled $3.1 billion, which was $69.8 million, or 2.3 percent, more than anticipated.

At the close of the 2018-19 fiscal year, overall tax revenue is $2.1 billion, or 6.4 percent, more than was collected in the 2017-18 fiscal year.

The 2018-19 fiscal year General Fund revenue collections reported above are preliminary, pending a final revenue deposit and year-end adjustments.

Total 2018-19 fiscal year revenue collections, combined with reductions in budgeted expenditures, enabled the Commonwealth to end the fiscal year with a budget surplus. The Commonwealth is projected to make a $316.9 million deposit into the Budget Stabilization Reserve Fund.

June Details

Sales tax receipts totaled $969 million for June, $26.4 million above estimate. Year-to-date sales tax collections total $11.1 billion, which is $347 million, or 3.2 percent, more than anticipated.

Personal income tax (PIT) revenue in June was $1.2 billion, $4.2 million above estimate. This brings year-to-date PIT collections to $14.1 billion, which is $78.6 million, or 0.6 percent, below estimate.

June corporation tax revenue of $590.1 million was $39.9 million above estimate. Year-to-date corporation tax collections total $5.5 billion, which is $630.5 million, or 12.9 percent, above estimate.

Inheritance tax revenue for the month was $96.4 million, $2.6 million above estimate, bringing the year-to-date total to $1.1 billion, which is $24.4 million, or 2.3 percent, below estimate.

Realty transfer tax revenue was $53.7 million for June, $1 million above estimate, bringing the fiscal-year total to $534 million, which is $27.2 million, or 4.9 percent, less than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $166.9 million for the month, $6.6 million below estimate and bringing the year-to-date total to $1.8 billion, which is $8.2 million, or 0.5 percent, below estimate.

Non-tax revenue totaled ($1.0) million for the month, $2.3 million above estimate, bringing the year-to-date total to $801.6 million, which is $44 million, or 5.8 percent, above estimate.

In addition to the General Fund collections, the Motor License Fund received $244.9 million for the month, $10 million below estimate. Fiscal year-to-date collections for the fund — which include the commonly known gas and diesel taxes, as well as other license, fine and fee revenues — total $2.8 billion, which is $57.9 million, or 2 percent, below estimate.