The state of Vermont saw less revenue than expected from personal income taxes in fiscal year 2017 and more than expected from corporate income taxes.
Personal income tax revenue underperformed by $13.9 million, or was 1.8 percent below projections, according to information from the Agency of Administration.
Sales and use tax underperformed by $3.5 million, or $1.4 percent, relative to projections made in January, according to the agency.
“They’re down against revenue forecast,” said Brad Ferland, the deputy secretary of the Agency of Administration. “They’re still up over last year … but they’re just not up as high as the economists had projected they could be.”
Meanwhile, corporate income tax revenue was $19.5 million higher than projected, largely because the state is still processing $16.3 million in corporate income tax refunds, according to Ferland.
The Legislature is planning to use one-time money to issue those refunds in fiscal 2018, which started July 1. That $16.3 million in refunds is the main driver of a $28.8 million revenue downgrade for fiscal 2018 that economists announced June 21.
At the June 21 meeting with lawmakers, Tom Kavet, the Legislature’s economist, said Vermont’s economy continues to grow, but not as quickly as is necessary for some revenue sources to keep up with projections.
Kavet also said personal income tax is a volatile revenue source.
