Tax collections on target for October

Hannah News Service 

Variances in major tax sources balanced out to an on-target revenue haul in October, according to preliminary figures from the Ohio Office of Budget and Management (OBM). 

Monthly tax collections of $2.3 billion were $6.9 million or 0.3% above estimates. For the year so far, tax collections are $570.4 million or 6.7 percent ahead of estimates, although much of that total stems from the understated effects of Ohio’s first expanded sales tax holiday. State leaders set aside more than $700 million to offset revenue losses from the holiday, but the actual effect on sales tax collections was nowhere near that figure.  

Collections are still lagging last year’s figures, down $392.7 million or 4.2% compared to how much tax revenue the state had brought in at this point in FY24. 

For October, the sales tax brought in $1.18 billion, up $13.6 million or 1.2% versus estimates. Better than expected non-auto sales tax performance, which is up almost $18 million or 1.8%, offset a dip in auto sales taxes, which were down $4.3 million or 2.5% versus estimates. 

The income tax saw the biggest variance by dollar amount, reaching $737.9 million, which was $70.4 million or 8.7% below estimates. 

The Commercial Activity Tax (CAT) saw the biggest percentage variance, reaching $196 million to beat estimates by $64.5 million or 134.1%. 

Compared to October of FY24, tax collections were $76 million or 3.2% lower last month. Income taxes brought in $106 million less, but sales taxes netted about $50 million more. 

“October was a solid month for the state General Revenue Fund. While we observed variances among the categories, overall GRF tax receipts finished the month exactly in line with the forecast,” said OBM Director Kimberly Murnieks in a statement.