Governor Mitt Romney today joined Revenue Commissioner Alan LeBovidge to announce that revenue collections for January totaled $1.924 billion, an increase of $238 million or 14.1 percent more than last January. Year-to-date collections totaled $10.385 billion, an increase of $877 million or 9.2 percent over last year.
Romney said the state is on track to collect more revenue in Fiscal Year 2006 than it ever has in history, following last year's record-breaking collections. He said revenues are far in excess of what is necessary to support planned budgetary spending.
"Someone once said the law requires us all to pay taxes, but it doesn't say anything about leaving a tip," said Romney. "That's certainly the case with our state's tax collections."
Romney called again for the Legislature to honor the wishes of the voters by lowering the income tax to 5 percent. In his proposed budget for the coming fiscal 2007 year, the Governor proposed lowering the income tax in two stages - from 5.3 percent to 5.15 percent the first year, then to 5 percent in the second year.
Receipts in January were $80 million above the monthly benchmark that was adjusted on January 17, 2006, the second upward revision. Year-to-date collections are now tracking $540 million above the year-to-date benchmark corresponding to the original fiscal 2006 estimate of $17.448 billion.
"January's collections were carried by very strong estimated payments on personal income taxes and on strong corporate and business payments," LeBovidge said. "In recent years, refunds have outpaced collections of corporate taxes in January, but not this year."
Income tax collections for January totaled $1.363 billion, an increase of $188 million or 16.0 percent over last January. Withholding tax collections totaled $811 million, an increase of $46 million or 6.0 percent. Sales and use tax collections were $387 million, up $11 million or 3.0 percent from last January. Corporate and business tax collections were $28 million, a rise of $27 million from last January.
Year-to-date income tax collections totaled $6.017 billion, an increase of $433 million over last year. Income tax withholding for the first seven months of fiscal 2006 totaled $4.787 billion, up $246 million or 5.4 percent. Total sales and use tax collections were $2.412 billion, an increase $90 million or 3.9 percent. Year-to-date corporate and business tax collections were $932 million, an increase of $364 million or 64 percent.
January 2006 Tax Collections (preliminary as of February 1, 2006)