BISMARCK, N.D. -- State income tax collections fell below projections in April, sparking concern among budget officials about how the rest of the state's 2001-03 budget period will play out.
Revenue from all sources is off by $1.9 million for the first 10 months of the current biennium, which started July 1, 2001. While that amounts to only three-tenths of 1 percent of the total budget, "that's a significant drop," said Deputy Director Pam Sharp of the Office of Management and Budget.
North Dakota is still much better off than most states. The National Governors Association reports a sharp decline nationwide in income tax receipts and an up-tick in the amount of refunds due for the first quarter of 2002. Sharp said one state has stopped sending income tax refund checks to taxpayers.
OMB reports individual income tax collections in April were $8.3 million, or 16 percent, below what was expected when the latest projections were made in December. Corporate income taxes were also down in April by 12.1 percent, about $1.5 million.
Income taxes -- corporate and individual -- collected for the entire 10-month period are almost $14 million below forecast, or off about 6 percent.
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The state has asked its financial consultants, Economy.com, to do a new revenue forecast for the remainder of this biennium, which runs through June 30, 2003. Sharp said it will be a regularly scheduled review.
"We always do one this time of year," she said. Income tax is not the budget area in which the state expected to have trouble, Sharp said. At the time of a special revenue forecast in December, "we were concerned about sales taxes."
But sales taxes in April were 14.2 percent -- or about $3.5 million -- over expectations.
Readers can reach Forum reporter Janell Cole at (701) 224-0830
