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State Revenues Lagging by $749 Million

By John Forester | July 9, 2020

From WisPolitics.com …

State revenues for 2019-20 collected so far are $749 million behind what Wisconsin took in during the previous fiscal year, according to a new Legislative Fiscal Bureau.

Still, LFB Director Bob Lang noted it will be late August before the agency has a clear picture on how the economic fallout from COVID-19 has impacted the 2019-20 fiscal year. That’s because while the state pushed back the tax filing deadline to July 15, collections will still apply to the 2019-20 fiscal year.

Today’s memo lays out the latest snapshot of tax collections amid the pandemic.

For June alone, general fund tax collections were down $370 million compared to the same month in 2019. That was largely driven by a reduction in estimated payments for income and franchise taxes, reflecting the delayed filing deadline. The second was a drop in tax withholding payments, reflecting the “severe decline” in employment.

Meanwhile, sales tax collections last month were down $9 million compared to June 2019. LFB noted the drop of 1.7 percent was an improvement of the declines of 10.1 percent in May and 9.9 percent in April. The June collections largely reflect activity in May and reflect an uptick in activity after the state Supreme Court’s ruling in the middle of the month lifted the extended stay-at-home order. LFB also noted federal stimulus payments and enhanced unemployment benefits also likely helped allow consumers to make purchases they otherwise would’ve put off.

Read the memo here.

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