State revenue falls in November

Year-to-date net general revenue collections for fiscal-year 2006, beginning July 1, increased from $2.65 billion to $2.78 billion. November collections fell 0.6 percent, from $552.8 million to $549.4 million.

Corporate income and corporate franchise tax collections experienced the largest year-to-date increase, 48.6 percent, from $143.3 to $213 million. Collections increased 31.4 percent in November.

Sales and use tax collections increased 2.3 percent for the year to date, from $812.1 million to $830.9 million, and increased 4.1 percent for the month.

Individual income tax collections were up 7.7 percent for the year to $1.81 billion, a $130 million increase over 2004 year-to-date collections. November tax revenue increased 8.5 percent.

Refunds also jumped significantly in November, up 45.2 percent for the year to date and 150.7 percent for the month. Collections from refunds were $236.8 million so far this year, compared to $163.1 million last year.

Revenue from all other collections decreased 7.3 percent for the year to date, from $175.7 million last year to $162.9 million this year. Other collections decreased 5.5 percent for the month.

The drop in revenue from other collections is a result of the increase in refunds, said Commissioner of Administration Mike Keathley. The unusual growth in refunds is unexplainable so far, he said, but officials will continue to examine the numbers.

“(Refunds) have been high all year,” he said. “For November in particular, since those didn’t have coordinating percentages to the prior month, we’re looking into that.”

Keathley also warned that higher energy prices could translate into higher operating costs for businesses, possibly resulting in decreased revenue collections in coming months.