State income tax collections down
The latest report from the Office of Management and Budget shows income tax collections in May were about $19.8 million lower than the March revenue forecast.
"We have found that there were about 28,000 fewer filers than had filed in the previous year," said OMB director Pam Sharp. "Of those filers, the average adjusted gross income went from $71,000 to $68,500 per return."
Sharp said that reflects the slowdown in the state’s oil economy in 2016.
"All those high income jobs left," Sharp said. "Those people probably went back to their home states, didn't have to file any tax returns for North Dakota. The ones that were left probably made a little bit less money."
Sharp said in May, other tax types were closer to forecast. She said while sales tax was down about $2 million in May, motor vehicle excise tax collections were up about $2 million.
Meanwhile. the state’s revenue forecast anticipates $111 million in tax collections in June. Sharp said she believes the state is on-track to collect those taxes.
"Sales tax appears to be coming in exactly as it had been expected to," Sharp said. "Corporate income tax is already $6 million more than we had anticipated."
Sharp said that would leave an estimated $30 million in the bank at the end of the biennium, June 30th.