A strong state economy pushed tax revenue above expectations, allowing state government to transfer $105 million into the cash reserve fund.
State Tax Commissioner Doug Ewald net tax receipts for June totaled $404 million, 1.6% better than forecast, ending the fiscal year with an uptick typical for the year as a whole. Net receipts for the fiscal year which ended June 30th came in 2.9% above the forecast, a total of $105 million.
“Its strength across the board, really in all sectors of our economy across the state,” Ewald tells Nebraska Radio Network, “talking about the strength of ag, to commercial, industrial, manufacturing, those types of things.”
For the year, individual income tax receipts came in $65 million, or 3.7%, above the forecast. Corporate income tax receipts exceeded the forecast by 17%, a total of $34 million. The sales and use tax came in nearly a percent (0.8%) higher than forecast, or $12 million. State law requires the excess to be transferred to cash reserves.
The Nebraska Economic Forecasting Advisory Board predicted state tax receipts would total $3.6 million for the fiscal year. Actual tax receipts exceeded $3.7 million.
Ewald says state officials expect a bit of a slowdown in the current fiscal year, though Ewald expects Nebraska businesses to do well.
“I think corporate income will continue to exceed expectations, because the corporations have become extremely lean in this downturn. They haven’t hired back those additional workers, at least yet,” according to Ewald. “Those incremental sales that they may be getting today are trickling straight to the bottom line, because they don’t have as much overhead as they had in the past.”
AUDIO: State Tax Commissioner Doug Ewald discusses state tax receipts with Brent Martin. [5:30]