Commonwealth’s general fund revenue rose 7.5 percent in March
The commonwealth’s general fund revenue rose 7.5 percent in March as payroll withholding and sales tax collections increased.
On a fiscal year-to-date basis, total revenue collections increased 2.7 percent, lagging the annual forecast of 3.2 percent growth.
Collections of payroll withholding taxes rose 10.4 percent in March, with one more deposit day than March of last year. Collections of sales and use taxes, reflecting February sales, rose 8.5 percent in March.
On a year-to-date basis, collections of payroll withholding taxes — 63 percent of general fund revenues — increased 3.3 percent ahead of the same period last year, trailing the estimate of 4.1 percent growth.
Sales tax collections — 18 percent of general fund revenues — increased 1.6 percent, trailing the annual estimate of 4.1 percent growth.
The governor’s office said the last three months of the fiscal year are significant for tax collections. In addition to estimated and final payments from both corporations and individuals due in April and May, estimated payments are again due in June.
Fiscal year 2016 fourth quarter collections must total $5.9 billion to meet revenue forecasts, compared with $5.7 billion collected in the fourth quarter of last year – a 3.5 percent increase.