LANSING – Michigan revenues from its primary taxes fell slightly short in October, according to figures released Tuesday by the Senate Fiscal Agency, and ended the 2014-15 fiscal year $156 million short of estimates.
While the initial estimate of $21.61 billion during the 2014-15 fiscal year is still a 3.1 percent increase from 2013-14, it fell shy of the 3.9 percent growth the state’s Revenue Estimating Conference had projected.
Final year-end figures will be issued at the state’s book-closing, which will probably be in December.
But the report showed that revenues in October and for the year also displayed strong growth in the personal income tax and the Corporate Income Tax.
However, the sales tax fell short both in October and for 2014-15. Forecasts had been for it to gain 2 percent from 2013-14, instead it increased 0.7 percent from that year.
While the state’s fiscal year runs from October 1 to September 30, taxes are collected through October and accrued into the fiscal year.
The SFA said the state collected $1.2 million more in the General Fund in October than expected, but fell $45.1 million below expectations in the School Aid Fund. October revenues were also $2.6 million short in constitutional revenue sharing.
The personal income tax raised $723 million, up 8.2 percent from the year before. For the full fiscal year, the tax raised $8.9 billion, a 9.6 percent increase.
The Corporate Income Tax raised $127.5 million in October, up 54.3 percent from the year before, and netted $1.06 billion for the year, up 13.5 percent.
The state education property tax was up by 1.6 percent from October 2014, raising $955.9 million, and was up by 2.6 percent for the year, netting $1.85 billion.
The state was also helped in October by lower than anticipated refunds for the old Michigan Business Tax.
And the tobacco tax was up by 1.5 percent in October, collecting $83.8 million. It was up by 0.5 percent to $944.7 million for the year.
Most the other specific taxes collected in October were down compared to October 2014.
Sales tax collections were down by 6.7 percent compared to October 2014, totaling $616.5 million. For the entire fiscal year, the sales tax raised $7.27 billion, down by 0.7 percent.
The use tax fell 18.4 percent in collections, netting $104.3 million. For the year it was up by 0.6 percent to $1.34 billion.
And the real estate transfer tax was down by 11.3 percent in October, raising $25.7 million. For the year, however, it was up by 14.9 percent, raising $261.5 million.
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