TBO.com - TBO is Tampa Bay Online

State Tax Revenue Less Than Predicted

ADVERTISEMENT

By CATHERINE DOLINSKI

The Tampa Tribune

Published: May 22, 2008

TALLAHASSEE - As predicted, state tax collections for the month of April were down - way down.

The $2.36 billion that Florida netted in April came in $91.7 million below what the state's economic analysts had predicted. The month's revenues also came in below April 2007's net collections, which totaled close to $2.48 billion. The state Office of Economic and Demographic Research released the latest revenue figures late Wednesday afternoon.

About $50 million of this April's shortfall was because of flagging sales tax collections. Although tourism-related sales taxes yielded $11 million more than expected, and building-related sales tax yielded $4.8 million more, it was not enough to offset heavy losses in business- and auto-related taxes that collectively came in nearly $30 million under projections.

Other revenue that came up short included the insurance premium tax, which yielded $90 million instead of the $154.3 million expected. That disconnect, according to the economic research office, owed partly to low collections and partly to predictions being made based on an "anomalous monthly pattern" seen in the prior fiscal year.

The bad news for April follows a $54 million shortfall in March, bringing total collections for fiscal year 2007-2008 nearly $141 million below the projections that analysts had released at a revenue estimating conference this spring.

House Budget chief Ray Sansom, R-Destin, said in a statement released Wednesday evening that the trend of low collections is "eroding the $322 million we saved to buffer the state's budget against such shortfalls" but that the state will make it through the fiscal year ending on June 30 without falling into deficit.

Gov. Charlie Crist has said repeatedly over the past two weeks that low revenue in March and April would not prompt him to veto more line items in the 2008-2009 budget that awaits his signature. On Monday, however, he said he could not rule out dipping into the state's emergency reserve to offset continuing losses in the current fiscal year.

Reporter Catherine Dolinski can be reached at (850) 222-8382 or

cdolinski@tampatrib.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT