July 2018 State Tax Collections

July is not a major revenue month for the state, with only about 5 percent of total projected 2018-19 General Fund revenues collected. As shown in the table below, collections from the state’s three main taxes came in $246 million below the June 2018 budget projection. Lower sales tax results explain this shortfall, as PIT collections were somewhat above projections and corporation taxes were very close to the monthly estimate. A new IT system used to collect sales tax may explain this lower collection. Specifically, July was the first time quarterly taxpayers had to use this new system. If the shortfall primarily is due to the new IT system, sales tax revenues should increase in later months to offset this dip.

Updated August 22, 2018.