HFA: Michigan over a billion dollars ahead of revenue projections
Michigan brought in over $3 billion in taxes in June.
Thelatest monthly reportfrom the House Fiscal Agency shows year-to-date revenue is now over a billion dollars ahead of the previous estimate.
That’s around $966.8 million in extra General Fund/General Purpose revenue and School Aid Fund revenue that’s $85.4 million above the May consensus estimate.
But senior economistJim Stansellwith the agency says some of that combined total is artificially high.
“More than half of that, approaching 60%, is reflected by individual tax refunds that haven’t been claimed but that we expect to be claimed later on this year,” Stansell said.
In total, net income tax revenue for June was around $1.28 billion, pushing YTD revenue much higher than the 2021 fiscal year. The report credits much of that to the new flow through entity tax, which replaced some quarterly collections.
Business taxes brought in around $317.5 million.
Meanwhile, Stansell said monthly sales tax collection in June passed the billion-dollar mark for the first time ever.
He said it remains to be seen how much of that is tied to inflation.
“But that indicates at least that people are feeling good about the economy to the extent that they’re still spending. They’re not pulling back yet and so that’s—there’s probably a positive sign there,” Stansell said.
The consumption taxes, which include sales tax, beer and wine taxes and others, came to around $1.26 billion in June.
Other miscellaneous taxes came to $206.6 million.
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