Nebraska’s January tax receipts see 10% boost over projections
This week, the Nebraska Department of Revenue released its monthly revenue receipts report for January 2022. Although sales and use tax revenues were 16.1% below forecast, net revenues for January 2022 were $495 million, or 10% above the certified forecast of $450 million.
The breakdown of January 2022 net revenue receipts are as follows:
- Net Sales and Use: 16.1% below forecast
- Net Individual Income: 34.6% above forecast
- Net Corporate Income: 5.1% below forecast
- Net Miscellaneous: 57.6% above forecast
Tax refunds were $162 million, 113% above the $76 million in refunds forecasted.
Net General Fund receipts for fiscal year 2021-22 were $3.354 billion, which is 3.7% above the October forecast of $3.235 billion.
- Net Sales and Use: 0.2% below forecast
- Net Individual Income: 6.7% above forecast
- Net Corporate Income: 4.2% above forecast
- Net Miscellaneous: 4.8% above forecast
With CPI inflation being at a record high 7.5% and Nebraskans finding they have less disposable income, will this affect consumer spending and business investments? The next revenue forecasting meeting will be later this month, and it will be interesting to see if the revenue forecasting board takes this into consideration with their revenue projections.
This is important to note as the Legislature begins debating the mid-biennial budget as well as legislative proposals to reduce taxes in the coming weeks. The Platte Institute will be monitoring debate closely to see if 2022 is the year that major income tax proposals make it across the finish line.