Legislative budget analysts say December provided a measure of good news for the state government’s revenue situation, but they say it doesn’t necessarily indicate a sustained economic recovery.
The Joint Legislative Budget Committee staff says December was the fifth conservative month with ear-over-year growth in tax collections. December collections were 11 percent above those from December 2009 after excluding revenue from the temporary sales tax increase.
The analysts cite individual and corporate income tax gains as driving December’s revenue growth.
However, they say the increase in individual income tax collections is likely due to changes in state income tax withholding rates. And they say corporate income tax revenue increased almost entirely due to the large amount of refunds in December 2009.