Mississippi tax revenues continue to rise
Mississippi’s tax revenue through October, the first four months of the fiscal year, is about $ 160 million more than the amount collected in the same period last year, according to the latest revenue report released.
As of October, the state has collected $ 2.2 billion, which is 7.75% more than the amount collected from various taxes during the same period in 2020.
The October revenue report released by staff of the Legislative Budget Committee continues a surging trend in revenue collections that began in the summer of 2020 as federal COVID-19 relief funds poured into the ‘State. For the month of October, the state collected $ 584 million in revenue, $ 47.3 million more than the amount collected in October 2020.
The surge in tax revenues comes as legislative leaders and Governor Tate Reeves scramble to finalize budget proposals for consideration when the legislature meets in plenary session in January to begin developing a budget to fund the programs of the State, such as education, health care, and law. of execution, for the new fiscal year beginning on July 1.
The 14 members of the Legislative Budget Committee, including Lt. Gov. Delbert Hosemann and President Philip Gunn, are due to meet on Wednesday to agree on a revenue estimate with Reeves for the next fiscal year.
This estimate will mean the early projection of revenues that are expected to be collected in the coming fiscal year to finance the state budget.
When developing this budget, the committee and the governor are likely to take several factors into account, including:
- The economic outlook of the state, which has an impact on revenue collection.
- Current recipes of recipes.
- The fact that the state collected $ 924.5 million, or 15.9% more revenue in the last fiscal year, which ended on June 30, compared to the previous year, means that the state treasury is teeming with funds.
According to the October Revenue Report, just about every category of state revenue is up for the year. The largest source of revenue, the sales tax on retail items, increased by $ 165.4 million or 26%, while the use tax, imposed on the Internet and other sales to the out of state, rose $ 10.3 million, or 7.7%. The second-largest source of income – personal income tax – increased only $ 6.6 million or less than 1%, while corporate income tax fell by 32, $ 8 million or 17.2%.
Another category that has seen a decline in revenue collected is the tax on cigarettes, alcohol and beer, which fell $ 5.1 million or 5.3%.
The drop is not surprising since alcohol sales soared last year at the start of the pandemic as the governor shut down much of the state. Most other sources of income have increased.
After the revenue estimate is adopted on Wednesday, the governor is expected to release his budget proposal by November 15, according to state law. The governor may include in his proposal recommendations on how the state should spend $ 1.8 billion in federal bailout funds that are supposed to be used to fight COVID-19, but by in reality, the state has considerable discretion over how funds are spent.
The budget committee is expected to publish its proposal in early December.
The governor and legislative leaders have expressed hope to increase teachers’ salaries in the next session. In addition, the governor has proposed to phase out the state income tax, which accounts for about a third of tax revenue. Gunn proposed to phase out income tax, but also to increase other taxes, such as the retail items tax, to make up for lost income.
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Mississippi tax revenues continue to soar as legislative leaders and governor strive to finalize budget proposals
Mississippi’s tax revenue through October, the first four months of the fiscal year, is about $ 160 million more than the amount collected in the same period last year, according to the latest revenue report released.
Through October, the state collected $ 2.2 billion, which is 7.75% more than the amount collected from various taxes during the same period in 2020.
The October Revenue Report released by Legislative Budget Committee staff continues an upward trend with revenue collections that began in the summer of 2020 as federal COVID-19 relief funds flowed into the state . For the month of October, the state collected $ 584 million in revenue, or $ 47.3 million more than the amount collected in October 2020.
The boost in revenue comes as legislative leaders and Gov. Tate Reeves scramble to finalize budget proposals. for consideration when the legislature meets in plenary session in January to begin the task of developing a budget to fund state programs, such as education, health care and law enforcement, for the new fiscal year starting July 1.
The 14 members of the Legislative Budget Committee, including Lt. Gov. Delbert Hosemann and President Philip Gunn, are due to meet on Wednesday to agree on a revenue estimate with Reeves for the coming fiscal year.
This estimate will mean the early projection of revenues that are expected to be collected in the coming fiscal year to finance the state budget.
When developing this budget, the committee and the governor are likely to take several factors into account, including:
- The state’s economy economic outlook, which has an impact on income collection.
- Current perceptions of income.
- The fact that the state collected $ 924.5 million or 15.9% more revenue in the past fiscal year, which ended on June 30, than the previous year, meaning that the state treasury is overflowing with funds.
According to the October Revenue Report, just about every category of government revenue is up for the year. The largest source of revenue, the sales tax on retail items, increased by $ 165.4 million or 26%, while the use tax, imposed on the Internet and other sales to the out of state, rose $ 10.3 million, or 7.7%. The second largest source of revenue – personal income tax – increased only $ 6.6 million or less than 1%, while corporate income tax fell by 32, $ 8 million or 17.2%.
Another category that has seen lower revenues is the tax on cigarettes, alcohol and beer, which fell $ 5.1 million or 5.3%.
The drop is not surprising since alcohol sales soared last year at the start of the pandemic as the governor shut down much of the state. Most other sources of income have increased.
After the revenue estimate is adopted on Wednesday, the governor is expected to release his budget proposal by November 15, according to state law. The governor may include in his proposal recommendations on how the state should spend $ 1.8 billion in federal bailout funds that are supposed to be used to fight COVID-19, but by in reality, the state has considerable discretion over how funds are spent.
The budget committee is expected to publish its proposal in early December.
The governor and legislative leaders have expressed hope to increase teachers’ salaries in the next session. . In addition, the governor proposed to phase out the state income tax, which accounts for about a third of the revenue collected. Gunn proposed to phase out income tax, but also to increase other taxes, such as the retail items tax, to make up for lost income.
This item first appeared on Mississippi Today and is republished here under a Creative Commons license. 
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