C. Tax Revenues

1st Quarter 2024 Report

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State general fund tax revenues increased in the fourth quarter of 2023 compared to the same quarter of 2022.1 Among the components shown, Net Corporate Income Tax increased the most in percentage terms, followed by Net Individual Income Tax and General Excise and Use Tax (GET). Transient Accommodations Tax (TAT) revenues decreased.

In the fourth quarter of 2023, total tax collections distributed to the State general fund totaled $2,215.0 million, an increase of $191.5 million or 9.5 percent over the same quarter of 2022 (Tables C-1 and C-2). In 2023, State general fund tax revenues increased $63.5 million or 0.7 percent over the previous year.

During the fourth quarter of 2023, GET revenues (excluding the county surcharges) totaled $1,075.0 million, an increase of $30.6 million or 2.9 percent over the same quarter of 2022 (Table C-3). In 2023, GET revenues increased $210.8 million or 4.9 percent from the previous year.

Compared to the fourth quarter of 2022, Net Individual Income Tax revenues increased $139.3 million or 23.3 percent to $738.2 million in the fourth quarter of 2023 (Table C-4). In the fourth quarter of 2023, Declaration of Estimated Taxes decreased $21.0 million or 17.8 percent (Table C-5), Payments with Returns decreased $14.5 million or 16.2 percent (Table C-6), Revenues from Withholding Tax on Wages increased $40.4 million or 6.3 percent (Table C-7), and Refunds decreased $134.4 million or 53.9 percent (Table C-8). In 2023, Net Individual Income Tax collections decreased. 111.9 million or 3.2 percent compared to 2022.

Net Corporate Income Tax revenues, which tend to be volatile by nature, increased from $67.0 million in the fourth quarter of 2022 to $92.0 million in the fourth quarter of 2023, an increase of $25.0 million (Table C-9). In the fourth quarter of 2023, the Declaration of Estimated Taxes increased $35.0 million or 53.1 percent (Table C-10), the Payment with Returns decreased $0.8 million or 6.7 percent (Table C-11), and the Refunds increased $9.2 million or 90.1 percent (Table C-12), compared with the same quarter of 2022. In 2023, Net Corporate Income Tax revenues increased $46.4 million or 16.5 percent from the previous year.

In the fourth quarter of 2023, Transient Accommodations Tax (TAT) revenues decreased $3.8 million, or 2.1 percent compared to the same quarter of 2022 (Table C-13). In 2023, TAT revenues increased $16.2 million or 2.0 percent from the previous year.

According to the most recent data available, in the third quarter of 2023, the Retailing tax base increased 2.5 percent or $295.9 million (Table C-14), the Services tax base increased 1.9 percent or $93.9 million (Table C-15), the Contracting tax base increased 10.5 percent or $292.4 million (Table C-16), and the Hotel Rentals tax base decreased 5.3 percent or $115.0 million (Table C-17), compared to the same quarter of the previous year. For the first three quarters of 2023, the Retailing tax base increased 5.2 percent, the Services tax base increased 6.9 percent, the Contracting tax base increased 9.7 percent, and the Hotel Rentals tax base increased 4.4 percent.

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1/   When interpreting tax figures in conjunction with other quarterly data in this report, it should be kept in mind that the tax data represent collections during the quarter. The transactions on which the taxes were paid did not necessarily take place during the quarter.