LANSING – December tax collections were about $102.6 million above the level expected in the Senate Fiscal Agency’s estimate for the month, with the bulk of additional revenue being accounted for with the Michigan Business Tax and Corporate Income Tax collections, the Senate Fiscal Agency’s December 2012 revenue report showed on Wednesday.
Michigan Business Tax revenue totaled $41 million in December, with year-to-date collections being $95.4 million higher than anticipated based on the May 2012 consensus revenue estimates. Corporate Income Tax collections totaled $95.3 million in December, with year-to-date collections for the tax $45.6 million above forecasted levels.
Revenue from the state’s General Fund and School Aid Fund earmarked taxes totaled $1.8 billion in December, up 7.3 percent from last year’s level. Collections earmarked to the General Fund were $102.2 million above the expected level for December. School Aid Fund tax collections were $0.1 million above the forecasted level, the report noted.
Net income tax revenue totaled $767.9 million in December, a 14.9 percent increase over last year’s level. Withholding payments were up 13.3 percent from a year ago as well.
Sales tax receipts totaled $648.4 million in December, an 8.4 percent increase from the year prior. One reason year-over-year sales tax growth was so strong was because December 2011 ended on a weekend, the report said. The use tax generated $108.1 million in revenue, about a 9 percent increase over a year ago.
The improving housing market also made for major increases in the real estate transfer tax receipts for the month, bringing in $11.6 million, the highest level for a December since December 2007. The 2012 number reflects a 95.9 percent increase from the year prior. State Education Property Tax was also up about 41 percent from the year prior.
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