December 18, 2014

Strong individual earnings drive state revenue higher in September

Strong individual earnings drove state revenue up in September.

State Tax Commissioner Doug Ewald reports that net receipts for September totaled $394 million, 7.8% above the forecast of $365 million.

Net individual income tax came in 14.6% above the forecast.

Ewald speculates that an early harvest season might have fattened the wallets of seasonal workers.

“The farmers were strong after it in the month of September. So, that could have driven a little bit of the number from withholding,” according to Ewald. “But, overall, that’s a very positive number for the state of Nebraska when you have individual income tax withholding coming in at a good clip.”

State government’s fiscal year began July 1st. Net General Fund receipts for the first quarter of the fiscal year total $950 million, 3.9% better than the forecast of $914 million

Ewald points out the numbers look even better when compared to the same period a year ago.

“The first three months of this year when you compare to the first three months of the prior fiscal year, we’re approximately 8% ahead in net receipts, which amounts to approximately $70 million,” Ewald says. “So, we are doing well on a year-over-year basis.”

Again, individual earnings are pushing up state revenue. Of the $70 million increase, $50 million comes from individual income taxes.

Though net corporate income tax receipts rose 5.3% above the forecast, Ewald says timing might have made the biggest difference in the growth. Ewald says that approximately $2 million in corporate refunds expected to come in September, came in a month earlier in August, driving August numbers down and making September numbers look better.

Click here for link to Nebraska Department of Revenue revenue numbers.