Personal Taxes

Private revenue development is anticipated to see the strongest improve in 40 years | Mississippi

(The Center Square) – Mississippi’s estimated revenue for FY2023 is $ 6.49 billion, based on figures presented to the Joint Committee on Budgets and approved this week.

The numbers are 0.06%, or $ 40.8 million, higher than estimates for fiscal year 2022, according to numbers from state economist Corey Miller. The state’s fiscal years run from July 1 to June 30.

Miller said the numbers include an estimated $ 3 billion Mississippi will receive from the infrastructure investment and jobs bill passed by Congress last week.

The numbers show Mississippi recovering from the pandemic losses.

Wages and salaries are set to rise 4.7% over the course of the calendar year, Miller said. Personal income is expected to grow 9.7% in what will be the biggest annual increase since 1981, he said.

Sales tax revenue increased 4.1% in FY 2021 compared to FY 2020. Miller said the numbers for the first four months of FY 2022 were 7.7% higher than the same period last year.

Income tax revenues for individuals have increased 16.9%, according to Miller.

According to Miller, in 2020 the state saw “relatively less decline” in employment than the rest of the US. The latest figures show that Mississippi restored 83.5% of the jobs lost in March and April 2020.

Corporation tax revenue rose 94.1% in October over current estimates, Miller said.

“Officials in other states speculate that these increases may be the result of companies speeding up some of their income reporting to stave off potential federal corporate tax hikes,” Miller said.

The state mirrored the US as gross domestic product rose 2% in the first quarter and 4.5% in the second. However, growth has slowed and Miller predicts the final numbers for 2021 will show a 3.9% increase.

Although growth is slowing, the number represents the largest annual expansion since 2003, Miller said.

“We expect growth will return to its pre-pandemic trend over the next year,” Miller told the committee.

The 14-member committee meets again in December to discuss its recommendations for the budget year 2023.

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