State improves tax collections by over 6%

Missouri’s net general revenue collections rose by 6.5 percent to $1.4 billion during the first two months of the state’s fiscal year.

The increase was bolstered by an August improvement of 7 percent to $792.3 million from $740.6 million, according to a news release. The state’s fiscal year started July 1.

Fiscal 2018 gross collections by tax type:
    •    Individual income taxes increased 2.3 percent to $980.2 million.
    •    Sales and use tax collections moved up 4.6 percent to $374.4 million.
    •    Corporate income and franchise tax collections jumped 16.6 percent to $28.3 million.
    •    All other collections rose 79.3 percent to $73.5 million
    •    Refunds fell 8 percent to $89.9 million.

Compared with the same month a year earlier, August individual income tax collections dipped 1 percent; sales and use tax collections climbed 9.8 percent; corporate income and franchise tax collections decreased 4.8 percent; and all other collections increased by 58.4 percent. Refunds dropped by 33.8 percent, according to the release.

Missouri Office of Administration Director Dan Haug noted in the release the general revenue fund borrowed $50 million from the budget reserve fund in August for cash flow purposes. The funds are due to be paid back by the constitutional deadline of May 15.