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.
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.
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.