- The Legislative Budget Office’s latest revenue report shows that with individual income taxes down, sales tax collections continue to climb in the Magnolia State.
Mississippi revenue collections came in below estimate in January 2024 by just under $6 million. However, the state remains in a solid budgetary position as total revenue collections for seven months into the fiscal year have exceeded estimates by over $98 million.
The January 2024 revenue report from the Legislative Budget Office released on Wednesday shows collections were $5,982,193, or 1.05% below the sine die revenue estimate, bringing the current year-to-date revenues to $98,307,865, or 2.37% above the sine die revenue estimate.
A year-over-year comparison shows January 2024 collections were $23,127,222, or 3.93% below January FY 2023 actual collections.
As previously noted in prior months, this is largely attributable to the reduction in income taxes as passed by lawmakers and signed into law by Governor Reeves during the 2022 session. In fact, individual income tax collections for the month of January were below the prior year by
$19.4 million. Year-to-date, individual income tax collections are down $123 million over the prior year.
As for other revenue lines, sales tax collections continue to climb, up for the month of January over the prior year by $5.7 million. Sales tax revenues are now up over $78 million year-to-date above estimates.
Corporate income taxes are above estimate by nearly $42 million year-to-date while use and gaming taxes are nearly on par with estimates at $400,000 above estimate and $2.6 million below estimate, respectively.
The total state budget is for the fiscal year is set at $7,523,800,000.
Lawmakers, now back in session, are currently considering budget requests as they prepare the Fiscal Year 2025 state budget and set spending levels for the new fiscal year which begins July 1st.
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