Personal Taxes

Tax revenues rise in July, however personal revenue collapses

Vermont Business Magazine Secretary of Administration Susanne Young today released Vermont revenue results for July 2021. The income of the general, education and transport fund was above target. Income tax, the General Fund’s main source of income, however, fell short of expectations. The PI had been the leader in Vermont’s excess revenue for the past two years. Young pointed out that the PI is a reliable economic indicator, although it’s too early to say (July is the first month of fiscal year 2922).

Meanwhile, other sources such as corporate, tourism-related rooms and meals, and secondary taxes have filled the gap.

The revenue collections for July 2021 have been created. The state’s revenues from the General Fund, Transportation Fund, and Education Fund combined were $ 6.91 million, or 3.5%, above monthly consensus expectations from the updated consensus revenue forecast adopted by the Emergency Board on July 30, 2021 .

General Fund revenues for the month were $ 124.81 million, or $ 3.04 million above the monthly consensus revenue target.

“While most of the sub-components of the General Fund’s revenue were close to target, it’s worth noting that personal income, which is a good guiding star for the economy, has underperformed, while one-off inheritance and estate taxes have underperformed, which resulted in a net increase in monthly income, ”said Secretary Young. “It is also important to note that this sales report for the first month of the fiscal year does not reflect a trend in a larger fund or source of income.”

The Transportation Fund was $ 470,000, or 2.16%, above consensus expectations for the month and raised $ 22.03 million.

The education fund (excluding property taxes) was € 60.42 million.

“Sales and use taxes continue to fuel the oversupply of the Education Fund, which accounts for $ 2.91 million of the $ 3.4 million in additional revenue,” said Secretary Young.

“Federal policies like child tax prepayment and pandemic unemployment benefits, coupled with unprecedented federal spending like the American Rescue Plan Act, puts more money in the pockets of Vermonters who, in turn, use them to buy goods and services and shore up Vermont Business. The short-term prospects for the three big funds are good; However, we must continue to view these federal policies as one-off events as we prepare the budgets for the 2023 budget year, ”Minister Young said. “If we set a base level of spending that is unsustainable after these federal funds are no longer available, we will create a very difficult fiscal environment in the future.”

Source: Montpelier, VT – Administrative Secretary 08/23/2021

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