Commission on Government Forecasting and Accountability
HOUSE
C.D. Davidsmeyer, Co-Chair
SENATE
Heather Steans, Co-Chair
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June 2018 Monthly Briefing
ECONOMY: SUPREME COURT ALLOWS FOR INTERNET SALES TAX COLLECTION
Benjamin L. Varner, Senior Analyst and Economic Specialist

On June 21, 2018, the Supreme Court overturned a long-standing case that barred States from forcing out-of-state vendors to collect taxes on sales made to their residents. Quill Corp. v. North Dakota, 504 U.S. 298 (1992) was a Supreme Court decision that ruled that unless a vendor had a physical presence, or nexus, within a State, they could not be forced to collect any taxes due on purchases.

REVENUE: FY 2018 REVENUES FINISH ON POSITIVE NOTE
Jim Muschinske, Revenue Manager

Base receipts grew $469 million in June. The increase reflected higher income tax rates as well as a strong performance of transfers related to “catch-up” activity from the Capital Projects Fund. The month had one less receipting day compared to a year earlier.
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Excluding November’s $2.5 billion bond sale transfer proceeds, as well as $533 million from interfund borrowing, base general funds grew $8.973 billion in FY 2018. Increased income tax receipts, fund sweeps, strong transfers, and increased federal sources resulted in the significant gain.
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While overall revenues outperformed the Commission’s February forecast by approximately 2% and nearly 2.3% in the case of the GOMB/IDoR projection, when the highly volatile category of federal sources is excluded, both agencies produced forecasts within 1% of actual results.