State says tax collections running ahead of last year
Mar 08, 2012
State tax collections are off to a strong start in 2012, with February running nearly 4% ahead of estimates.
Bolstered by a boost in income-tax collections last month, state tax revenue is now $187 million above estimates for the 2012 fiscal year (1.6 percent). Income taxes were up 20 percent over estimates in February because refunds were much lower than anticipated, according to the Office of Budget and Management.
For the year, income-tax collections are 1.4 percent above estimates, and the sales tax is 2.3 percent above projections, fueled by auto sales.
Ohio tax collections through the first eight months of the fiscal year are more than 9 percent ahead of the same period last year. The state’s sales and income tax collections are up more than 6 percent, and the overall increase in revenue is helped by commercial-activities-tax money that, unlike previous budgets, is going into the general revenue fund.
Gov. John Kasich is expected to roll out an income-tax cut as part of his mid-biennium budget package. The plan is to implement an across-the-board cut paid for with increased severance taxes related to new shale drilling for oil and natural gas.