The Department of the Treasury reported that August revenue collections for major taxes totaled $2.633 billion, up $28.0 million, or 1.1 percent above last August. Revenue growth was constrained due to one less weekly Gross Income Tax (GIT) employer withholding payment compared with last August. Total collections from the major taxes would have been higher by $219.8 million, or 9.1 percent above last year after adjusting for the one less withholding payment. Fiscal year-to-date, total collections of $3.289 billion are higher by $253.4 million, or 8.3 percent above last year.
While overall collections have started FY2025 higher compared to last fiscal year, the first two months of the fiscal year are less significant than most other months. The first meaningful tax revenue collections will occur in September because of the substantial quarterly estimated payments that are due under the GIT, Corporation Business Tax (CBT), and the Pass-Through Business Alternative Income Tax.
August collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.150 billion, lower by $136.6 million, or 10.6 percent below last year. The decrease was distorted due to the calendar timing shift of one week’s employer withholding payment from August to July compared to last year. GIT revenues would have been about $55.3 million, or 5 percent above last year after adjusting for the one fewer payment. Estimated payments and final payments were lower while refunds were higher. Fiscal year-to-date collections of $1.478 billion are up $30 million, or 2.1 percent over last year.
The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.116 billion, an increase of $22.8 million, or 2.1 percent above last August due to a one-month lag in reporting and payment of Sales Tax; August revenue reflects consumer activity in July.
The CBT, the second-largest General Fund revenue source, totaled $23.9 million for August, an increase of $149.4 million or 119 percent due almost entirely to a significant reduction in refunds from last year when one CBT taxpayer was issued refunds in excess of $100 million for multiple return years.
Realty Transfer Fee revenues of $45.2 million were up by $3.8 million or 9 percent above last year reporting positive growth for three out of four months as unit closed sales increased in July contributing to growth since August collections reflect July’s housing market activity.
Please see attached chart for monthly and yearly revenue collection comparisons.
