The Illinois Commission on Government Forecasting and Accountability (COGFA) reports that overall receipts in December gained $95 million. This is mostly due to a correction in a misallocation of sales tax revenues.   

 

Personal Income and Sales Taxes

Gross personal income taxes continued to perform well in December, with revenues up $76 million net of refunds.  Although sales tax receipts were up $76 million for the month, this is mostly due to an error in directing sales tax revenues.   Over the first five months of the fiscal year, approximately $75 million in sales tax receipts were inadvertently directed to the Local Government Tax Fund rather than to the General Fund. COGFA states that as a result, most--if not all--of the jump in sales tax receipts appears due to subsequent reconciliations completed in December.

 

This is the second time in the past year that a misallocation of sales tax revenues has taken place. The resulting artificial peaks and valleys that are caused by these occurrences makes tracking, reporting on, and predicting sales tax revenue difficult.

 

Corporate Income Tax

Corporate income tax was up $26 million in December, however, no corporate income taxes were receipted in November due to a computer system conversion at the Department of Revenue.  That means December revenues include November receipts.   After taking that into account, COGFA reports that actual December corporate income tax receipts were basically flat.

 

Other December Revenues

The Cook County IGT was up $16 million due to timing of receipts; inheritance taxes also gained $10 million; other sources grew $5 million and corporate franchise managed a $2 million increase.

Despite the overall gain in revenue, COGFA reports a few sources suffered monthly losses. Insurance taxes and fees fell $42 million, although timing of receipts may be the cause and will be known next month. Public utility taxes dropped $11 million, liquor taxes were down $3 million, and interest income dipped $2 million.

Riverboat gambling transfers were flat, lottery transfers increased $16 million, and other transfers gained $23 million. Federal fell $97 million for the month.

Year to Date

Through the first half of the fiscal year, overall base receipts were up $574 million. However, most ($206 million) of those gains is due to gains in federal sources associated with reimbursable spending. Excluding federal gains, all other receipts have grown by $368 million, reflecting lack of growth in a number of the larger revenue sources.

One area that continues to fare well is gross personal income tax receipts. Through December, receipts are up $304 million.  At the same time, the corporate income tax has been struggling. Through the first six months of the year, gross corporate income tax has fallen $36 million. Also underperforming is sales tax, as receipts are only up $31 million, or less than one-percent.

Lastly, despite the recent drop off in federal sources, due to significant earlier reimbursable spending, federal sources are still up $206 million for the year.

Read the full COGFA December Monthly Briefing here.

Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

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WHAT? Making the Connection: Public Benefits and Single Adults & Public Benefits for Youths up to 21

WHEN? March 5, 2008

WHERE? Naperville, IL

Presented by the DuPage Federation on Human Services

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WHAT? Making the Connection: Mental Health and Public Benefits & Understanding Spenddown

WHEN? March 6, 2008

WHERE?Naperville, IL

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WHAT? Understanding Appeals & Domestic Violence and Public Benefits

WHEN? March 18, 2008

WHERE?Naperville, IL

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WHAT? Immigrants and Public Benefits & Putting the Pieces Together

WHEN? March 19, 2008

WHERE?Naperville, IL

Presented by the DuPage Federation on Human Services

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WHAT? Making the Connection Basic Training

WHEN? Tuesday, June 10, 2008

WHERE? Naperville, IL

Presented by the DuPage Federation on Human Services the session contains practical information in an easy to understand format regarding many programs available to assist low income persons.

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