October 4, 2007
Corporate, sales tax revenue down
Maine Revenue Services says the state's corporate income tax revenue is $3 million below budget for September and $10 million short for the first quarter of this fiscal year, according to the Brunswick Times Record.
Sales tax revenue is also about $3 million below budget for the first quarter, which could further bloat the state deficit. "My biggest concern of all the tax lines is the sales tax," Mike Allen, director of research at MRS, told the Legislature's appropriations committee, according to the paper. The state may "have some problems," Allen said, "if energy prices remain high and the season starts off relatively cold."
The Legislature's appropriations committee is already trying to cut $10 million to meet the $6.3 billion two-year state budget that began July 1. If more cuts are needed because of falling revenue, the committee may have to draft a supplemental budget for 2008 with deeper cuts.
Sales tax revenue is also about $3 million below budget for the first quarter, which could further bloat the state deficit. "My biggest concern of all the tax lines is the sales tax," Mike Allen, director of research at MRS, told the Legislature's appropriations committee, according to the paper. The state may "have some problems," Allen said, "if energy prices remain high and the season starts off relatively cold."
The Legislature's appropriations committee is already trying to cut $10 million to meet the $6.3 billion two-year state budget that began July 1. If more cuts are needed because of falling revenue, the committee may have to draft a supplemental budget for 2008 with deeper cuts.
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