December revenues miss mark, come in 11.5% below estimates

Hannah News Report 

Ohio’s December General Revenue Fund tax receipts came in 11.5% or $263.7 million under estimates for the month, according to preliminary figures released Friday by the Office of Budget and Management (OBM). 

However, OBM goes on to note, “Through the first six months of the fiscal year, tax receipts are essentially at estimate, just $18.9 million or -0.1% under forecast.” 

The Personal Income Tax (PIT) accounted for the shortfall, coming in $266.8 million or 28.4% below the estimate for the month. OBM attributed the shortfall to “significant taxable year 2022 refunds. Excluding refunds, income tax receipts were $35.1 million (3.5%) above estimate.” 

The auto sales tax collections were also below the December estimates by $3.5 million or 2.4%. 

This underperformance was partially offset by the non-auto sales tax collections that were $12.2 million or 1.1% over estimates and the Commercial Activity Tax (CAT) that was also over estimates by $2.2 million or 11.1%. 

“Through the first half of FY24, Ohio’s budget continues to be on solid footing, with current year non-auto sales taxes, Commercial Activity Tax receipts, and investment income to the state’s General Revenue Fund each exceeding estimates by healthy margins, and employer withholding tax payments showing solid growth,” OBM Director Kimberly Murnieks said in a prepared statement. 

“Monthly revenues were negatively impacted by large income tax refunds paid to filers who requested extensions for the 2022 tax year. This historic level of December refunds was driven by shifts in payment strategies for pass-through entities who elected to take advantage of tax law changes for federal tax purposes. Even so, when tax receipts, investment income, and other non-federal income to the General Revenue Fund are combined, fiscal year-to-date revenues are on track. While it is unlikely that income tax refunds of this magnitude will recur in future Decembers, this shift will be taken into consideration as we forecast future income tax estimates by month.” 

So far, for the first six months of FY24, the state has collected a total of $14,007,439 compared to an estimated $14,026,400. Compared to last year at this time, revenues are running nearly $43.2 million ahead.