Strong back-to-school sales offset dips in individual and corporate income tax revenue in the tax revenue receipts released by the state for August.
The Nebraska Department of Revenue reports gross sales tax receipts grew 3.4% in August, while gross individual income tax receipts dropped 2.2% and corporate income tax receipts dropped 9.9%.
State Tax Commissioner Doug Ewald says General Fund gross receipts for last month totaled $392.5 million, 0.2% below the forecast of $393.3 million. Still, that was above totals from last year. Tax receipts for August this year are 2% higher than in August of last year. Overall tax receipts for the first two months of the fiscal year are 3% ahead of the same period in FY 2012.
Ewald credits back-to-school sales to a report that nearly hit the target dead-on.
“The gross numbers for sales tax are indicative of some of the back-to-school sales and maybe they were a bit better than what we thought they might be,” Ewald tells Nebraska Radio Network.
Tax refunds were up in August, 3.7% higher than the forecast. That had a mixed result on the net. Net sales tax revenue dropped to 1.5% above the forecast. Net individual income tax receipts dropped even further to settle at 3.2% below the forecast, but net corporate income tax receipts jumped to 81.4% above the forecast (individual income tax receipts are much larger than corporate tax receipts).
Of all the numbers churned out today, Ewald focuses on the bottom line: a report only 0.2% below the forecast.
“The best forecast is the one you hit for budgeting purposes and it appears we’re tracking quite well right now.”
For the full report from the Nebraska Department of Revenue click here.