Florida Tax Revenues Got A Boost In July – CBS Miami
TALLAHASSEE (CBSMiami / NSF) – Aided in part by the people who continue to spend savings during the COVID-19 pandemic, general revenue collections in Florida exceeded expectations by 24 percent in July.
Revenue surveys such as sales taxes were $ 619.8 million above what state economists had forecast in April, according to a report released Monday by the Legislature’s Office of Economic & Demographic Research.
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The July numbers, which reflect economic activity, which mostly happened in June, benefited from the latest round of federal economic controls, diverted spending from the hard-hit service sector and some consumers resorting to “untypically large savings” made during the pandemic according to the report.
Floridians’ personal savings rate, the percentage of disposable income people save, was 9.6 percent in July, up from 7.9 percent in fiscal 2018-2019, according to state economists. During the pandemic, when people put restrictions on movement and spending, the savings rate hit a record 33.7 percent in April 2020.
The sales tax levies for July were 25.2 percent above their projected amount and accounted for 89 percent of the total increase above projections. Sales taxes have partially recovered with the return of tourists to the state.
Sales taxes from tourism were 32.8 percent above the forecast for July. Revenue from automobile sales was 31 percent above forecast.
General income taxes play a key role in funding programs such as schools, health care and prisons. Legislators, who use the estimates when working on a state budget, will return to Tallahassee on Monday for the first in a series of committee weeks leading up to the 2022 legislature beginning January.
General revenue is $ 3,165. 9 billion for July marked the 12th straight month in which the state beat forecast figures. Overall revenue for the month was forecast at $ 2.546.1 billion.
In August, economists released a report that Florida lawmakers are estimated to generate an estimated $ 2.6 billion more total revenue than previously projected for this fiscal year and 2022-2023. Plus, they will have nearly $ 6 billion in unspent federal coronavirus mood money. The current fiscal year began on July 1st.
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Still, economists expect a possible slowdown, but not a reversal in current economic direction.
“We know people had to spend more money on goods because they were unable to spend on services,” said Amy Baker, co-ordinator of the Legislature’s Bureau of Economic and Demographic Research, when she made the estimates on Jan. August updated. “The big challenge for We tried today to find out during this year when this return to normal will take place and how smoothly it will be?”
In addition to the July sales tax hike, Florida also saw higher home-related tax receipts. Documentary stamp duty levies rose 121.2 percent from the April forecast, suggesting that “property market prices and activity have been stronger than expected,” the report said. Intangible taxes also rose 79.5 percent from forecast, suggesting strong refinancing activity.
At the same time, however, the National Federation of Independent Business on Tuesday voiced its concern that small business owners are losing confidence in the strength of future business conditions, in part due to problems in finding labor.
“Small business owners are concerned about the supply chain and labor situation, as well as the pandemic, and that creates uncertainty about how quickly things will return to normal,” said Bill Herrle, executive director of NFIB Florida, in a prepared statement.
The Florida Department of Economic Opportunity will release an unemployment report for August on Friday. Unemployment will mark the second month since leaders made serious efforts to get people back into work by withdrawing Florida prematurely from two federal aid programs – the federal Pandemic Unemployment Compensation and Mixed Earning Unemployment Compensation Programs – and a “job search” implement new “requirement for people who apply for unemployment benefits.
Other federal unemployment programs that were part of the pandemic recovery effort ended on September 6.
Some Democrats and groups like the Florida AFL-CIO have repeatedly raised concerns that the state is trying to force people to take jobs below their skill level and at low, non-viable wages.
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(© 2021 CBS Local Media. All rights reserved. You may not publish, broadcast, rewrite, or redistribute this material. Jim Turner, Florida News Service contributed to this report.)