State revenue collections drop 10 percent in April

Missouri net collections for April were $1.02 billion, compared to $1.13 billion in April 2007, the state reported May 2. Collections for the fiscal year to date, however, are up 2.2 percent to $6.45 billion from this time last year.

Individual income tax collections are up 4.8 percent for the year to $5.01 billion, but were down 8.2 percent for the month.

The decline was due in part to a sharp drop in equity indices late last year and a higher number of taxpayers who have yet to file tax returns because of flood-related extensions, according to the report.

Sales and use tax collections, meanwhile, are down 0.9 percent to $1.65 billion for the year and were up 5.8 percent for the month.

Corporate income and corporate franchise tax collections are down 0.2 percent to $501.6 million for the year and were down 11.4 percent for the month.

All other collections are up 2.1 percent to $399.3 million for the year but were down 25.7 percent for the month.

Refunds are up 8.3 percent to $1.11 billion for the year and grew 2.8 percent for the month.

Repercussions coming?

Commissioner of Administration Larry Schepker in the report called April results disappointing with the potential for deeper repercussions down the road.

“Despite a strong third quarter, it is possible the state may not achieve the consensus revenue estimate adopted last fall,” the report said. “Because of responsible budget planning in past years, the fiscal year’s budget will not be negatively impacted.”

This story originally appeared in SBJ’s May 5 free e-news Daily Update. Click here to register.