On January 12, 2013 a fiscal 2014 consensus revenue estimate of $22.334 billion was agreed upon by the Secretary of Administration and Finance and the chairs of the House and Senate Committees on Ways and Means.
The fiscal 2014 budget assumes tax revenues of $22.797 billion, reflecting the fiscal 2014 consensus tax estimate adjusted for the impact of enacted revenue initiatives as well as tax revenues included in the transportation finance legislation and the reduction in estimated revenues during the two-day sales tax holiday held on August 10-11, 2013.
Based upon the tax revenue targets assumed in the fiscal 2014 budget, the Department of Revenue created a series of monthly and quarterly benchmarks to monitor and track revenue collections throughout the fiscal year.
Each month, the Department publishes a variety of tax revenue collection reports comparing the actual collections to monthly and year-to-date targets as well as year over year growth. Please see above for reports relative to each month.
On October 15, 2013 the Secretary of Administration and Finance kept the GAA tax revenue estimate of $22.797 billion unchanged.
On Wednesday December 4, 2013 the Commission of the Department of Revenue certified to the Secretary of Administration and Finance that inflation-adjusted baseline tax revenue growth for the three-month period of September, October and November 2013 over the same period in 2012 was 8.133%. This exceeded the threshold requirement of 0% and was the last of five required tax revenue thresholds necessary to trigger a reduction in the State’s income tax.
As a result, effective January 1, 2014 the part B income tax rate will be reduced from 5.25% to 5.20%.
On January 14, 2014, the Secretary of Administration and Finance revised the Fiscal Year 2014 tax revenue forecast to $23.200 billion. This reflected a $403 million increase from the $22.797 billion tax revenue estimate assumed in the Fiscal Year 2014 General Appropriations Act (GAA). There was no revision of the non-tax revenue estimate. Previously, on October 15th the non-tax revenue estimate was reduced $150 million from the estimate originally assumed in the Fiscal Year 2014 GAA.
Based upon this revised tax revenue forecast, the Department of Revenue created a series of updated monthly and quarterly benchmarks to monitor and track revenue collections throughout the remainder of fiscal 2014.