May is typically a
significant month for revenue collections. In addition to regular collections
of withholding and sales taxes, estimated and final payments for individuals
were due May 1. This year, the Governor authorized any individual and corporate
income tax payments due between April 1, 2020 and June 1, 2020 to be due on
June 1, 2020. The extension applies to final payments and extension payments
for taxable year 2019, and the first estimated payment for taxable year 2020.
Therefore, June receipts will be required to properly assess total fiscal year
revenues.
Collections of payroll
withholding taxes fell 13.0 percent in May. Collections of sales and use taxes,
reflecting April sales, fell 12.5 percent in May. The month represents a full
month of reduction in sales due to numerous store closings during the COVID-19
pandemic.
On a year-to-date basis,
collections of payroll withholding taxes—62 percent of General Fund
revenues—increased 3.1 percent, trailing the annual forecast of 4.7 percent
growth. Sales tax collections advanced 5.4 percent on a fiscal year-to-date
basis, also trailing the annual forecast of 7.4 percent growth. On a fiscal
year-to-date basis, total revenue collections fell 1.2 percent in May behind
the annual forecast of 3.1 percent growth. Collections in June must total $3.3
billion to attain the forecast. Collections in June of last year were $2.4
billion, and June collections are anticipated to be greater than the previous
year due to delayed tax payments due June 1.
