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State revenue update: sales tax and overall collections slightly ahead of target
Summary
Legislative fiscal staff reported March collections roughly $10 million ahead of target year to date, with sales and use tax about $6 million ahead (5.6% YTD growth vs. a 5.4% target); three months of collections remain before fiscal year close.
Jeff Melhoff, the Legislature's chief fiscal analyst, told the Joint Committee on Appropriations on April 30 that year-to-date revenue collections through March are roughly $10,000,000 above the adopted target.
Melhoff said the state is "about where we need to be" heading into the final quarter of the fiscal year. Key points he listed:
- Sales and use tax: about $6,000,000 ahead of target, representing roughly 5.6% year-to-date growth compared with the adopted 5.4% growth target. - Contractors excise tax: close to target (within about $186,000). - Lottery revenue: within about $43,000 of the target, roughly 2% year-to-date growth versus a 3.9% adopted target.
Melhoff said timing issues account for some shortfalls in insurance company tax and certain permits, and he expected those to correct in April or May. He noted three months remain for collections (April, May, June) and that an updated report including April collections would be circulated when available.
Committee members asked clarifying questions about the sales tax benchmark and requested circulation of the revenue report. Melhoff confirmed the committee is scheduled to meet again in July (listed on the LRC website for July 20 at 10:00) to review year-end revenues, reversions and FY27 revenue targets.
