A surge in corporate earnings couldn’t offset a steep drop in individual income tax receipts, driving state tax revenue five percent below projections in July.
State Tax Commissioner Doug Ewald says economic problems on the national level have become a drag on the state economy.
“A lot of the economic models we were using were based on assuming a growth rate of about two percent. As we see at the national level now, some of that stuff is being revised down to 1.3- 1%,” Ewald says.
Ewald cautions against reading too much into the July figures. He says it’s important to note that revenues fell below projections.
“The fact that we’re doing better than last year, we’re just not doing as good as the forecast had projected,” according to Ewald. “So, I think a lot of this is just that the forecast is higher, not necessarily that we’re doing bad.”
The Nebraska Department of Revenue reports that net tax receipts for July totaled $200 million, 5.2% below the forecast of $211 million. Net tax receipts from corporate earnings came in 115.6% above the forecast, but net receipts from individual income tax fell 20% below the forecast. Sales tax receipts were off nearly one percent.