Nebraska’s tax revenue last month missed the forecast amount by a fraction.
Tax Commissioner Tony Fulton says net receipts were $376 million, which is 0.6 percent below what was expected.
“That’s good news,” Fulton tells Nebraska Radio Network. “It looks like our receipts are tracking with respect to projections. In that regard, we’ll just have to wait and see how future months are.”
Nebraska is not alone in lower than expected or flat revenue collections, according to Fulton, who points to other agriculture-based economies.
“We’ve had a hard go, that’s no secret, but it’s been that way for other states as well” he explains. “Hopefully, Nebraska is able to weather this better than other states, because of our planning. It has to do with our projection that comes from the Forecasting Advisory Board.”
The Economic Forecasting Advisory Board made its most recent projections on October 27, 2017. It revised the forecast for the current fiscal year downward by $100 million to $4.505 billion.
“It looks to me like the Forecasting Advisory Board’s projection, which comprises the certified forecast for the State of Nebraska, it looks to be tracking pretty closely to what we’re seeing in reality,” Fulton says.
Net receipts for November were 0.6% below the certified forecast of $378 million and breaks down as:
Net Sales and Use: 3.0% below forecast
Net Individual Income: 2.1% above forecast
Net Corporate Income: 8010.8% below forecast
Net Miscellaneous: 7.8% below forecast
Fulton says corporate income tax difference reflects a business practice that regularly shows up in November.
He also points out that corporate income is a small part of the overall tax revenue the state collects.