Nov. 11, 2008 at 10:56am

State taxes again were less than expected

Taxes paid to the state between the Oct. 11 and Nov. 10 collection period once again fell short of the September forecast.

Receipts for the month were $52.8 million – 4.4 percent lower than expected. While there was a $60.4 million shortfall in Revenue Act receipts, non-Revenue Act payments exceeded the forecast by $7.4 million, or 7 percent.

Tax payments by firms in the retail trade sector were 8.6 percent below the year-ago level. Last month, the sector saw a decline of 7.3 percent. Tax receipts from the retail  trade sector have declined year-over-year in nine of the last 10 months. The sectors with the largest declines were motor vehicle dealers, furniture stores, building materials/garden supply retailers, apparel and accessories stores, and sporting goods, toys, books and music stores.

The auto sector, the largest retail trade category, has now reported a year-over-year decline in tax payments for ten consecutive months. Three retailing sectors reported moderate-to-strong gains: gas stations and convenience stores, nonstore retailers, and drug and health stores.

Non-retailing sectors reported a 1.2 percent overall decrease in tax payments. Last  month, collections from non-retailing sectors had decreased 3.7 percent. The construction sector reported a 5 percent decrease in tax payments this month after a 8.8 percent decrease in the prior month. Real estate excise tax and liquor sales were below their estimates.

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