Robert Bliss - email@example.com
Director of Communications
Revenue Commissioner Henry Dormitzer today announced that preliminary revenue collections for fiscal year 2007 were $19.736 billion, an increase of $1.248 billion or 6.8 percent over fiscal 2006 collections.
The total is $436 million above the revised fiscal 2007 estimate of $19.300 billion.
Revenue collections in June hit $2.293 billion. That total exceeded the collection of June 2006 by $257 million or 12.6 percent. June's total also exceeded the revised monthly benchmark by $192 million.
Dormitzer said preliminary analysis reveals that about three-quarters of the 2007 revenue increase comes from sources that are either one-time in nature or subject to considerable uncertainty. "While these year-end revenue numbers speak to the economic health of the Commonwealth, their presence a year from now is not a sure thing," Dormitzer said. "In fact, our preliminary analysis indicates that only $100 to $200 million of this increase should be included at this point in the revenue base for fiscal year 2008."
Of the principal sources of the increase, only one, an increase in withholding taxes, should be considered at this time as sustainable for the 2008 fiscal year. The other three, one-time legal settlements and taxes paid on capital gains and corporate profits, are volatile from year to year. By January 2008, economists should know whether the economy's performance over the coming six months merits increasing current estimates of capital gains and corporate tax revenue in the FY2008 budget, Dormitzer said.
Year end revenue collections are customarily reported at this time each year in conformance with DOR's application of the Generally Accepted Accounting Principles. Over the next month, DOR, the state comptroller, state auditor and the Commonwealth's outside auditor will finalize the fiscal 2007 total tax collections.
FY2007 Year-to-Date Revenue Through June 30, 2007