State revenue in Michigan outpaced projections last month.
Reports from the nonpartisan House Fiscal Agency and Senate Fiscal Agency both show the state brought in around $3.1 billion in July. That translates to a nearly 7% jump in monthly revenue over July last year.
Consumption taxes, including sales, use, and so-called “sin taxes” on things like alcohol and tobacco, made up the largest chunk of revenue last month. That’s despite revenue in nearly each of those areas falling compared to this point in the last fiscal year.
Strong use tax and online gaming numbers combined with fewer dollars being issued in income tax refunds helped keep overall revenue numbers higher.
As far as business taxes go, the state has issued fewer refunds under the legacy Michigan Business Tax than it expected so far. That number could still fluctuate as refunds get claimed. Meanwhile, Corporate Income Tax Revenue fell slightly short of projections.
In all, the state’s general fund beat year-to-date revenue predictions by between $455 million and $459 million, according to the Senate and House estimates. The School Aid Fund received about $195 million to $220 million above projections.
In the bigger picture, the new revenue figures only landed a small percentage over the expected value. But at a time when Michigan will likely face tough budget years ahead, every little bit could help.
