State sees largest revenue increase in 20 years

Net collections for the fiscal year, which ended June 30, totaled $7.33 billion, up 9.2 percent from $6.71 billion in 2005 – the most significant increase in 20 years. State officials had projected 4.9 percent growth at the beginning of the fiscal year.

Collections in June increased 9 percent to $731.1 million, compared to $671 million last June.

Corporate income and corporate franchise tax collections experienced the greatest increase, gaining 28 percent for the year and 17 percent for the month. Year-end collections totaled $606.7 million, compared to $473.8 million last year.

Sales and use tax collections were up 1.8 percent for the year, from $1.96 billion to $1.99 billion, but down 2.9 percent for the month.

Individual income tax collections increased 10.1 percent for the year, from $4.86 billion to $5.35 billion. Those collections also increased 7.3 percent in June.

All other collections rose 3.6 percent for the year, from $491.8 million to $509.3 million, and increased 24.8 percent for the month.

Refunds increased as well, by 5.4 percent, from $1.07 billion to $1.13 billion. Those collections decreased 7.5 percent.

Yearly revenue growth next year is currently estimated at 4.5 percent, which accounts for national trends such as increasing energy prices and higher interest rates, according to Gov. Matt Blunt’s office.