From Raleigh to DC: Wake Tech Legislative Affairs

January 18th, 2019

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.