January Revenue Higher Than Expected

For the month of January, Michigan received $67.2 million more in revenue than previously expected, according to figures from the Senate Fiscal Agency. Large increases in personal income tax and use tax helped contribute to the gain.

In total, Michigan collected $2.3 billion in revenues from the General Fund and School Aid Fund taxes, a 3.4 percent increase from January 2015. The Michigan Business Tax saved $52.4 million because refunds were off by 177.1 percent. The oil and gas severance tax was down 53.5 percent. Personal income tax collections were up 8.1 percent and gross collections up 6.2 percent, slightly below expectations. For the year so far, the tax is netting approximately $2.75 billion.

Use tax collections were around $128.3 million with $356.4 million total for the year. The tobacco tax also increased by 1.2 percent to $78.2 million collected with $233 million in total for the year. The sales tax has seen a drop of about 6.1 percent with total collections at $601.4 million. The corporate income tax was also down for the month by 6.5 percent, with collections netting $133.4 million. Insurance tax was down 2.7 percent with $78.2 million collected. Finally, the real estate transfer tax was off by 9.6 percent with $21.2 million total.

$5.6 billion in revenue has been collected so far for the 2015-2016 fiscal year. In total, the state is expecting $22.1 billion overall for the fiscal year.

posted by PAA Online , Friday, February 26, 2016 10:36 AM
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