The state’s tax division said January collections were $173 million ahead of the monthly benchmark for the fiscal year, led by stronger than expected income tax collections.
The Department of Revenue (DOR) said collections for the month totaled $2.28 billion, up 12.2 percent from January 2012.
But the DOR warned that the increase was likely the result of delays and other factors caused by Congress’ fiscal cliff negotiations in December.
January income tax refunds were well below expectations, which the DOR said could be attributed to a delay in the opening of the federal tax filing season. Totaling just $29 million out of an expected $109 million for the month, refunds are expected to make gains throughout the rest of the filing season.
The DOR said investors, uncertain about the prospect of higher taxes taking effect in 2013, made higher income tax payments toward the end of calendar 2012, leading to higher revenues in December and January.
Meanwhile, sales tax collections were up four-tenths of a percent, which was $13 million below the state’s benchmark and reflects slower than expected holiday sales.
Corporate and business tax collections were $36 million, down $16 million from a year ago and $7 million below benchmark. For the first seven months of the fiscal year, business collections are down 4.2 percent.
With five months remaining in the fiscal year, the state’s revised estimate for 2013 stands at $21.49 billion.
