After trailing during the first quarter of fiscal year 2025 (FY25), sales tax revenues stabilized in October, rising $2 million year-over-year from last October, according to a report released by the Commission on Government Forecasting and Accountability (CGFA).
Despite this uptrend in October, total FY25 sales tax receipts remain $120 million behind collections through October in FY24.
Other tax receipts have so far filled the gap left by declining sales tax collections. While personal income tax receipts fell $5 million in October, they are up $686 million year-over-year in FY25. Personal income tax collections are up partly through the cannibalization of corporate income tax receipts—which are down $255 million through October—as some income formerly filed as business income is now being filed as personal income.
Altogether, base state revenues are up $115 million (0.6%) year-over-year when factoring in state taxes, investment income, gaming revenues, and federal transfers, according to CGFA.
A growing public sector could pressure relatively even governmental revenues. The Governor’s Office of Management and Budget (GOMB) recently projected a $3 billion deficit in the state budget for next year.
