State tax revenue still on the rise

Advertiser Staff

State coffers continue to rise at a rapid rate, according to the latest numbers released by the Department of Taxation late yesterday.

A "double weekend effect," where months ending during a weekend throw off the actual totals collected in a given month, helped boost total revenues to $347.9 million during November, a 50.7 percent increase from the $230.8 million that was collected in November 2003.

Tax officials say November's numbers were skewed because the last day of October also occurred on a weekend this year, meaning part of its revenues were counted in November. Additionally, November 2003 numbers were lower than normal because that month ended on a weekend, making the percentage difference when compared with November 2004 even larger.

But even without the weekend effect, tax officials said, revenues increased by about 24.7 percent when comparing the two Novembers.

The state general fund has collected $1.6 billion for the first five months of fiscal year 2005, which began July 1. That's an 18 percent increase over the $1.3 billion collected during the first five months of fiscal 2004. Subtracting the weekend effect, total revenues for the year would be up only 15.7 percent. The Council on Revenues, which makes the cash projections on which the state budget is based, has forecasted an 8.8 percent increase in revenues for the year.

General excise and use taxes, which make up more than half the state's revenues, are up 15.3 percent for the year while individual income taxes are up 16.6 percent.