June 2013 Tax Revenues Increase by 6.6 Percent Over June 2012
MacIver News Service | July 16, 2013[Madison, Wisc…] Revenue estimates by the Department of Revenue (DOR) released late last week reveal that the state of Wisconsin brought in 4.6 percent more tax revenue in fiscal year 2013 than the previous year. This increase in general purpose revenue (GPR) led to a collection of more than $567 million for the state than in FY 2012.
Comparing the months of June 2012 and 2013, tax revenue increased by nearly $79 million, or 6.6 percent, indicating that biennial estimates are consistent with monthly trends. With the exception of a decrease in March, the state has collected more GPR dollars in each month this calendar year than in FY 2012.
A review of May’s tax numbers showed slightly lower, but still increasing, growth rates for tax revenue. A comparison of revenue estimates from May 2012 and 2013 showed an increase of more than $33 million, or 3.2 percent in tax dollars generated by the state.
Although these increases are promising for future growth, revenue estimates were at their highest this winter.
Four months ago, revenue collections peaked at an increase of 28.8 percent as compared to the previous fiscal year. This included an income tax collection return that rose by 183.3 percent. However, this was corrected with the aforementioned revenue decrease that struck in March.
In a May letter to the JFC, the Legislative Fiscal Bureau said the reason behind increased estimates is stronger individual income tax revenues. Those income tax collections showed a 10.1 percent growth when the June 2013 revenue was compared to the final numbers for June 2012.
But with the state budget passed and Governor Scott Walkerʼs tax cut plan in motion, its possible these trends could be reversed in the upcoming months.
According to a report released Tuesday by Walker and DOR, the Governor’s goals are to reduce the stateʼs tax burden, create business tax incentives and broad-based tax relief.
The report states that Walker plans to reduce income taxes by $330 million in fiscal year 2014, and by $322 million in 2015. Combined, the state budgets of 2011-13 and 2013-15 amount to $1.4 billion in tax cuts. This should have a significant effect on the amount of GPR dollars that the state will collect each month.
The full press release from DOR can be seen here.