Tax revenue collections were up $132 million over benchmarks through March, the Department of Revenue announced Friday, as state officials took a respite from planning for an estimated $1.8 billion budget deficit.
Facing a midyear budget gap estimated at $765 million earlier this year, lawmakers passed a corporate tax amnesty program, which they expected would raise $18 million as businesses avoid fines on back taxes.
The amnesty program, which runs March 16 through May 15, is so far underperforming. Through the end of the month, DOR received $163,000 from 281 participants, which is only a fraction of the $3.6 million estimate for amnesty collections in March.
Corporate and business taxes collected in March totaled $757 million, up $103 million from March 2014. But for the fiscal year, which will end June 30, collections are down $179 million, at $1.73 billion.
The month’s tax collections indicate a strong economy that might have performed better if not for the harsh winter, according to revenue officials.
Income tax withholding accounted for $1 billion in March, up $1 million over the benchmark. Revenue Commissioner Mark Nunnelly said the income tax figures indicate “economic stability and continued improvement.”
Total collections in the month of March were down because of tax refunds that had been delayed in February, according to DOR, which predicted “more refund catch-up” in April.
The $414 million in March sales tax revenues were $6 million below benchmark. Year-to-date sales tax collections are $62 million below benchmark.
“Sales and use tax revenue is lagging, undoubtedly due to weather-related sales losses,” Nunnelly said in a statement.
