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State Revenue on Pace in July; Sales Tax Receipts up 5.6%

In good news (unless you’re a consistent Libertarian), South Dakota state government took in a little bit more money than expected in July. According to the first monthly general funds receipts report of the new fiscal year, South Dakota took in 0.38% more cash than the Legislature said was necessary and 2.9% more than it did last July:

July 2017 general Fund Receipts

The good fiscal news comes mostly from $93.1 million in sales tax, 4.5% more than the Legislature expected and 5.6% more than the July 2016 count. The $4.01 million in above-expectations sales tax was enough to erase all of the deficit categories—contractor’s excise tax, insurance company tax, unclaimed property, license permits and fees, net transfers in, charges for goods and services, and bank franchise tax. (The $416K bank franchise tax deficit was due to “an accounting error”—hee hee!)

We also picked up $1.1 million from mineral severance taxes, more than twice as much as we expected for the month. Someone must be digging up more oil and gold!

12 Comments

  1. John Tsitrian 2017-08-16 11:14

    Not sure how they could come up with July numbers as Sales Tax reports and payments aren’t due until Aug. 20. What am I missing?

  2. jerry 2017-08-16 12:00

    Thought the same. How can those numbers be available when they are not all collected? Perhaps wishful thinking is now the norm?

  3. Cory Allen Heidelberger Post author | 2017-08-16 14:49

    Oh! Good point, John and Jerry! I think the numbers reported above are the sales tax revenues that came into state coffers in July from June sales.

  4. Cory Allen Heidelberger Post author | 2017-08-16 17:16

    Does that June report refer to returns filed in June, reflecting sales that took place in May?

  5. jerry 2017-08-16 17:45

    Do you think that we are somehow tilting the score to reflect more on what NOem had predicted regarding growth?

  6. Cory Allen Heidelberger Post author | 2017-08-16 18:06

    Nah, Jerry, they wouldn’t tilt the score that obviously. Besides, if they were going to tilt it, the first number to tilt would be the taxable sales, the more direct measure of GDP. John, I wonder what you and I are missing between taxable sales and tax receipts. Different reporting dates, perhaps?

  7. John Tsitrian 2017-08-16 20:53

    Think I figured it out, Cory. The 5.6% is FY to FY change. The June to June change was 3.7%, consistent with the numbers I dug up. Mercer’s blog has a longer compilation that leads with the 5.6% number but scrolling down you can see the M to M comparison, data provided by SD Dashboard. https://bfm.sd.gov/dashboards/GECo_2_gfrev_201708.pdf#page=6

  8. Cory Allen Heidelberger Post author | 2017-08-16 21:51

    Bingo! There had to be a logical explanation. Thanks, John!

  9. Bob Mercer 2017-08-17 04:26

    I don’t see 5.6 percent anywhere on Bob Mercer’s blog post regarding sales taxes. I see Mercer’s blog links to the BFM’s report, while Heidelberger’s blog uses the LRC’s report. One difference appears to be that BFM’s report excludes cost of administration for collecting sales taxes. LRC’s report doesn’t note that difference. — Bob Mercer

  10. John Tsitrian 2017-08-17 05:44

    Bob Mercer, the top line of the first table on your link compares “Actual July 2017” to “Actual July 2018.” The “percent change” is “5.6” The confusion stems from naming a month and not just comparing FY 17 to FY 18. Scrolling down the link brings up the month-to-month change of “3.7”

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