March appears to be headed for a strong finish in personal income and corporate tax payments. For the month through March 27, personal income taxes (net of refunds) totaled $2.7 billion, a gain of $292 million from a year ago and $161 million above estimates. Capital gains have been substantial, with stock prices up 18% over the past year accompanied by a 21% climb in home prices.
For much of the month of March, corporate income taxes have been outperforming estimates. For the month through March 27, corporate taxes totaled $1.5 billion, a number $108 million above estimates. This outperformance reflects the improvement in the operating profits of many companies and the ending of write-offs from prior years’ losses.
Yesterday was the 19th working day of the month. Compared to last year, cumulative monthly collections for the three major taxes have been consistently higher since mid-March. If collections continue at this pace, the state can expect to collect over $6 billion in March, generating roughly $700 million more than last year, and posting a 13% year-over-year change