From Raleigh to DC: Wake Tech Legislative Affairs
State Revenue Collections Ahead of Schedule
The General Assembly's Fiscal Research Division has reported that revenue collections for the first six months of Fiscal Year 2018-19 are running $188.6 million (1.9%) above the target set for the state last summer. Following an expected decline of $800,000 during the first quarter, collections rebounded strongly during the three months from October to December. Corporate Income and Franchise Tax collections combined for $82.9 million of the second quarter increase. The report adds that for now, "most forecasters see a minimal risk of a downturn [in the economy] for the next six months, but the risk of a recession has increased." The reduction in the personal income tax rate and corresponding increase in the standard deduction for 2019 will slow the growth in personal income tax collections.