COLUMBUS, Ohio — Ohio saw another month of strong tax revenue, according to the state’s Office of Budget and Management.
March generated a total general revenue fund with nearly $30.6 million in tax receipts, which was above the Budget Department’s estimate. This number was driven by personal income tax in Ohio.
What You Need To Know
- In March, Personal Income Tax collections came in $32.2 million above the forecasted amount by the Office of Budget and Management in Ohio.
- The Office of Budget and Management will work with the General Assembly for the upcoming 2024-2025 biennium
- Office of Budget Management’s director, Kim Murneiks said refunds have also been above monthly estimates which could result in less revenue for the month of April.
Ohio state revenue from personal income tax continues to outpace projections that the Office of Budget and Management held. In March, the state received approximately $32.2 million in personal income tax collections.
The Office of Budget and Management’s Director, Kim Murneiks, said refunds have also been above monthly estimates which could lead to less revenue in April. She said it’s a common trend seen on a national-scale.
Murneiks also claims that Ohio has seen very solid revenues throughout the entire fiscal-year. She said the department is extremely excited with the financial situation regarding personal income tax and state sales taxes.
Ever since the COVID-19 Pandemic, Ohio has regularly exceeded expectations when it comes to tax revenue. The department calculates its predictions each year by consulting a team of economists across Ohio. The economists will make a judgement of what the economic conditions are and decide to build an underlying economic equation for the anticipated tax revenue.
The department will look at the recent history of month-to-month receipts and then break-down the overall annual 12-month expectation. She said each time the governor puts forth a budget proposal, their department updates an economic and revenue forecast.
“So the state of Ohio traditionally forecasts very conservatively to ensure that we don’t get in a situation where we are unable to support the state budget based on revenues. So we do tend to be conservative in our forecasting, but there have been a lot of economic factors, a lot of uncertainty, a lot of different inputs into the equation that really were different than any time that we’ve ever encountered in history,” Murneiks said.
Murneiks said the updated revenue forecast is embedded in the budget, and the department will continue to work with the General Assembly throughout the entire process.
