The House Fiscal Agency in its September revenue update said the General Fund revenue is currently above May projections with the state’s business taxes underperforming.
Michigan collected $2.436 billion in September, which is $2.6 million less than September 2015. In the current fiscal year thus far, the state has collected $19,913 billion. The General Fund revenue is estimated to be $977.4 million in September 2016, which is $8.7 million above May Consensus Revenue Estimating Conference projections. Net income tax revenue totaled $968.2 million in September, $5.3 million above target, and collections throughout the fiscal year are $384.6 million higher than one year ago.
Business taxes were $7.6 million less than anticipated, and the General Fund tax revenue is $32.7 million below the projected amount. Net business taxes are $347.9 million with net business taxes in September at $54.3 million. School Aid Fund revenue is expected to be higher than May projections and income and use tax collections were above target. Consumption taxes, which includes sales, use, beer and wine, liquor, and tobacco taxes, were also higher.
Sales tax revenue lagged estimates earlier in the year but is on pace to meet anticipated collections while the use tax continues to be stronger than projected, according to the House Fiscal Agency.