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Strong tax collections carry through FY22, swelling surplus to $2.7B

Written on Jul 15, 2022

Provided by Hannah News Service 

Tax collections generated nearly $180 million more than expected in June, bringing Ohio’s revenue surplus to more than $2.7 billion at the close of FY22 on June 30, according to data from the Office of Budget and Management (OBM). 

The state collected $28.1 billion in taxes through the fiscal year, compared to expectations of $25.4 billion, a difference of nearly 11%. 

Personal income tax collections made up the bulk of that overage, bringing in $1.85 billion or 20.8 percent more than expected; June’s collections themselves were $50.1 million or 5.1% ahead of estimates. 

Sales tax collections ended the fiscal year $714.7 million or 5.8% ahead of forecasts, with the non-auto sales tax up $625.8 million or 6%, and the auto sales tax up $88.9 million or 5.8%. For June, non-auto sales tax was $102.9 million or 11.6% ahead of forecasts, while auto sales tax was ahead $21.5 million or 13.7%. 

The Commercial Activity Tax (CAT) yielded $196.1 million or 10.9% more than expected in FY22. In June, the CAT missed estimates by $3.3 million. 

Compared to FY21, tax collections for FY22 were $1.7 billion or 6.4% higher; collections for June were $37.5 million or 1.4% ahead of same month in FY21. 

“We continue to steer Ohio through a challenging national economy by exercising strong, conservative fiscal leadership -- and we’re delivering results. Our budget is balanced. We cut taxes, we contained government spending, and we are investing in the future, all while reducing state debt and saving money for every Ohio taxpayer,” said Gov. Mike DeWine in a statement. 

“State FY22 is now in the books and our finances are on solid ground. Through Gov. DeWine’s and the General Assembly’s leadership, we have navigated uncertainties by saving taxpayers money while allocating one-time money to one-time investments that will pay dividends for years to come. Our budget is structurally-balanced and we are prepared for the future with strong reserves, including record balances in both the state’s General Fund and in the Budget Stabilization Fund,” said OBM Director Kimberly Murnieks in a statement.