A bit of a down report doesn’t faze the State Tax Commissioner, who says state revenue remains strong.
Gross state tax receipts for May came in at $393 million, 2.3% below the certified forecast for $402 million. A nearly 18% drop in gross corporate income tax receipts, combined with lesser drop offs in sales tax receipts and individual income tax receipts kept receipts from meeting expectations. The state relies most heavily on sales and individual income tax receipts to pay its bills.
Still, the net receipts for the fiscal year remain well above the forecast.
Net General Fund receipts for the current fiscal year (2012-2013) total $3.662 billion, 7.6% higher than the certified forecast of $3.405 billion.
State Tax Commissioner Doug Ewald remains cautious.
“Well, I guess I’m not overly optimistic, but I’m not pessimistic by any means whatsoever,” Ewald tells Nebraska Radio Network.
Ewald says a consistent revenue stream is the key for the state.
“Absolutely, consistency; the best forecast, honestly, is the one that we hit.”
For the year, net sales tax receipts have come in barely above the forecast, while net individual income tax receipts are 13% higher than expected with net corporate income tax 18.6% better than forecast.
The Nebraska Economic Forecasting Advisory Board forecast was certified in mid-July of last year. The board revised the forecast in late April of this year.
Click here for a link to the full from the Nebraska Department of Revenue.
AUDIO: Brent Martin reports [:45]