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Fiscal Review reports modest overcollections, flags hemp and vapor tax uncertainty
Summary
Boyan Savage of Fiscal Review told the committee year-to-date state tax collections are modestly above estimates and identified new revenue sources (vapor and hemp taxes) while warning of uncertainty from federal hemp definitions that could affect future receipts.
Boyan Savage, executive director of Fiscal Review, briefed the committee on state revenues and the budget outlook, saying total enacted state budget figures and composition should be viewed in context of ongoing federal fund flows into the current fiscal year. "I'm going to use my time to focus on providing a brief update on state revenues," he said as he outlined current collections and volatility in revenue sources.
Savage reported roughly $91 million in overcollections relative to expectations for the first five months and said sales taxes are the main driver. He also described two recently created revenue streams: a 10% wholesale tax on vapor products (projected collections roughly $17.2M this year) and hemp tax collections (estimated $55M–$56M for the current year and $130M next year), but stressed that federal changes to hemp definitions introduce substantial uncertainty. The presentation also covered lottery and sports-wagering receipts and the state funding board's adopted ranges for next fiscal year.
