(The Center Square) — According to data from the state Department of Revenue, May tax revenues in Mississippi were up 2.65% over estimates.
The report says revenues were up by $15.2 million over the estimate, with a $9.1 million increase in corporate taxes making up most of the surplus. Compared to projections, total year-to-date tax revenues are up $652.7 million, a 10.4% increase.
With one more month remaining in the fiscal year, year-to-date revenues are up $315 million compared to last year (4.7%). Big gainers include the state’s corporate income tax, up $185.7 million compared to last year (26.3%); the state’s 7% sales tax, which increased $171 million over 2022’s numbers (7.4%); and oil and gas severance taxes, which grew $3.9 million (13.2%).
The state’s income tax revenue declined ($81 million, or 3.56% less revenue) compared to last year as the tax cut package passed in 2022 continues to phase-in over the next few years. The 5% rate dropped to 4.7% this year and will drop to 4.4% in 2025 and 4% in 2026.
Also falling was revenue from the state’s 7% use tax assessed on out-of-state and online purchases. Revenue from this tax was $35.8 million less than the year before, or a 9% drop. Excise taxes from the state’s new medical marijuana program, which went into effect on July 1, were $7.7 million.
Total revenues at this time in 2022 were $6.62 billion, while this year’s revenues are up to $6.93 billion. The Legislative Budget Office estimates that the Department of Revenue will collect $7.32 billion in taxes in fiscal 2024, which begins on July 1.
