first_imgTransportation FundSecretary Spaulding also reported on the results for the non-dedicated Transportation FundRevenue for February. Total non-dedicated Transportation Fund receipts of $14.49 million forthe month were above target by +$0.32 million (+2.28%), against the monthly target of $14.17million. The year to date non-dedicated Transportation revenue was $135.70 million versus thetarget of $134.62 million (+$1.09 million, +0.81%).Individual Transportation Fund revenue receipts components for February were: Gasoline Tax,$4.27 million or -0.82% behind target; Diesel Tax, $1.21 million or +30.13% ahead of target;Motor Vehicle Purchase & Use Tax, $2.85 million or +5.03% above target; Motor Vehicle Fees,$4.60 million or -6.02% below target; and Other Fees, $1.57 million or +17.70% in excess of themonthly target. The February year to date Transportation Fund revenue results were: GasolineTax, $41.04 million or -0.17% short of target, Diesel Tax, $10.21 million or +5.72% abovetarget; Motor Vehicle Purchase & Use Tax, $30.77 million or +1.58% ahead of target; MotorVehicle Fees, $42.51 million or -0.61% behind target; and Other Fees, $11.18 million or +3.60%above target.Secretary Spaulding said, ‘The Transportation Fund overall is tracking well against target.Motor Vehicle Sales & Use Tax in particular seems to be benefiting from increased vehicle salesover the prior year. One area that bears watching is Gasoline Tax due to concerns about theprice of oil and the impact of the unrest in the Middle East and North Africa.’The Secretary also reported on the results for the Transportation Infrastructure Bond Fund(’TIB’). TIB Fund Gas receipts for February were $1.17 million or +0.47% ahead of target;year to date receipts of $10.80 million were -0.66% short of target. TIB Fund Diesel receiptswere $0.14 million or +21.03% above the target for the month; year to date TIB Diesel receiptswere $1.22 million or +5.41% ahead of the target. TIB Fund receipts are noted below thefollowing table: Secretary of Administration Jeb Spaulding announced today Vermont’s February tax revenues were above the February 2010 results, but are behind economist projections. February is the eight month of fiscal year (FY) 2011.General FundGeneral Fund revenues totaled $51.30 million for February 2011, -$2.71 million or -5.02% below the $54.01 million consensus revenue forecast for the month. Year to date, revenues through February are $738.46 million or -0.58% below target. Compared to the same period for the prior fiscal year, FY 2011 GF results are 9.7% ahead of FY 2010, but remain below the FY 2008 results by -3.6%.‘The picture is mixed. While we can take some comfort in the fact tax revenues continue to come in ahead of last year, a sign of some economic improvement, the fact that General Fund revenues are below target for the second consecutive month is reason for caution, especially given the weakness in personal income receipts,’ Secretary Spaulding stated in characterizing revenue results through February.These targets reflect the revised Fiscal Year 2011 Consensus Revenue Forecast approved by the Emergency Board at their January 14, 2011 meeting. Statutorily, the State is required to revise the Consensus Revenue Forecast two times per year, in January and July; the Emergency Board may schedule interim revisions if deemed necessary.Personal Income Tax (PI) receipts are the largest single state revenue source, and are reported Net-of- Personal Income Tax refunds. Year to date PI receipts are $338.06 million, or -1.40% behind target. Net Personal Income Tax is comprised of PI Withholding Tax, PI Estimated Payments, PI Refunds Paid, and PI Other; with PI Withholdings less PI Refunds accounting for more than 60% of the annual net Personal Income Tax receipts. February’s net PI receipts were recorded at -$3.07 million (negative), – $3.28 million or -1561.60% below the monthly target of $0.21 million. Negative PI receipts occur when PI Refunds exceed PI Withholding receipts in a month.Generally, the month of February sees net PI Tax receipts estimated to be on the low side (less than 1% of total net PI receipts for the fiscal year) because PI refunds often meet or exceed the PI Withholding receipts. PI Withholdings are received at a rate of 8% per month, while more than 80% of PI refunds are made during the four month period of February through May. Coming into February, net PI receipts were tracking -1.29% below the consensus forecast and continued to be significantly below for the month of February resulting in a year to date shortfall of -1.40%. ‘It is concerning to already be -1.40% behind the year to date target after the first month of the four months that account for the majority of individual tax return filings. The next six to eight weeks of tax return activity will tell us whether we will be able to close the current shortfall before the end of the fiscal year,’ said the Secretary.Corporate Income Taxes for February are also reported net-of refunds. The February receipts were recorded at $0.72 million, or +$0.16 million or +29.40% above the monthly target of $0.56 million. Year to date Corporate Income Tax receipts of $48.66 million exceeded the target by +2.06%. March is the largest single month for net Corporate Income receipts; March will be a seminal factor in determining whether we will be able to remain above target for this fiscal year.The consumption taxes saw mixed results for February: Sales & Use Tax receipts of $15.90 million exceeded the monthly target by +$0.17 million (+1.07%); Rooms & Meals Tax receipts of $9.85 million fell slightly below target by -$0.06 million (-0.61%). Year to date, both consumption taxes are below target: Sales & Use Tax, $148.42 million (-0.85%); Meals & Room Tax, $83.62 million (-0.92%).Secretary Spaulding noted that, ‘We will be watching the individual and corporate tax filing season and the remainder of the winter tourism season closely. It is critical that the next two months exceed or, at a minimum, meet the targets in our four major tax categories (PI Tax, Corporate Income, Sales & Use, and Meals & Room) if we are to end FY 2011 with GF revenues at or above target for the fiscal year.’The remaining non-major tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and ‘Other’ (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage Tax, Fees, and Other Taxes). The results for the month of February were as follows: Insurance Tax, $22.57 million (+2.94%); Estate Tax, $0.72 million (-25.53%); Property Transfer Tax, $0.50 million (+6.63%); and ‘Other’, $4.10 million (-3.12%). Year to date results for these categories were: Insurance Tax, $40.46 million (+0.72%); Estate Tax, $19.94 million (+6.29%); Property Transfer Tax, $5.72 million (+8.33%); and ‘Other’, $51.28 million (-4.93%). Education FundThe ‘non-Property Tax’ Education Fund revenues (which constitute approximately 11.9% of thetotal Education Fund sources) were released today by Secretary Spaulding. The non-PropertyTax Education Fund receipts for February totaled $11.79 million, or +$0.64 million (+5.70%)ahead of the $11.15 million target for the month. Year to date Education Fund revenues were$102.60 million or -0.42% behind the year to date target of $103.04 million.The individual Education Fund revenue component results for February were: Sales & Use Tax, $7.95million, or +1.07% ahead of target; Motor Vehicle Purchase & Use Tax, $1.42 million or +5.03%;Lottery Transfer, $2.41 million or 26.46%; and Education Fund Interest, under $0.01 million against atarget of $0.02 million (-92.47%). Year to date results were: Sales & Use Tax, $74.21 million or -0.86%; Motor Vehicle Purchase & Use Tax, $15.38 million or +1.58%; Lottery Transfer, $12.97 millionor +0.02%; and Education Fund Interest, $0.03 against a target of $0.07 million (-53.66%).center_img ConclusionSecretary Spaulding concluded, ‘The national economy is brightening and beginning to gaintraction, although rising energy costs are a concern. A modest reduction in Vermont’sunemployment rate, some positive comeback in vehicle sales, and the hint of stabilization inhousing sales and prices begin to lay the foundation for a future return to more normal economicactivity. The next eight weeks will be pivotal if the GF revenue is to achieve target in the secondhalf of FY 2011.’last_img

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