State revenue collections increase 6.8 percent

According to an announcement from Commissioner of Administration Mike Keathley, year-to-date general revenue collections are $4.95 billion, up from $4.63 billion for the same period in FY 2005.

Keathley also noted that March 2006 net general revenue collections increased 13.6 percent compared to March 2005 – up from $443 million to $503.3 million.

A news release from Keathley’s office broke out gross collection amounts by tax type:

• Sales and use tax collections increased 1.9 percent for the year, up from $1.46 billion last year to $1.49 billion this year. Sales and use tax collections decreased 1.3 percent for the month of March.

• Individual income tax collections increased 8.4 percent for the year, up from $3.27 billion last year to $3.55 billion this year. Individual income tax collection increased 8 percent for the month.

• Corporate income and franchise tax collections grew 34.9 percent for the year, up from $288.1 million last year to $338.5 million this year, and collection of those taxes increased 16.4 percent for the month.

• All other collections increased 2.3 percent for the year, from $388 million last year to $345.9 million this year. All other collections increased 25.1 percent for the month.

• Refunds increased from $729.3 million last year to $824 million this year – an increase of 13 percent. Refunds decreased 3.9 percent for the month.

Keathley said Gov. Matt Blunt continues to be encouraged by general revenue collections, which are indicative of good economic growth for the state of Missouri. Individual withholding tax revenue, one component of individual income tax, grew 8 percent in the third quarter – the fastest growth since FY 2002. That growth suggests that salaries and wages continue to grow at a healthy pace in Missouri.

Growth in the national economy is expected in the next several months, though Keathley continues to be wary of fluctuating energy prices and potential inflation.