Strong sales tax collections in August helped Missouri's revenues rise more than 4 percent during the first two months of the state's budget year.
Figures released Friday by the state Office of Administration show August sales tax revenues were up 9.6 percent over the same month a year ago. Corporate tax collections also rose while tax refunds fell. That helped offset a slight decline in individual income tax collections and produced a net revenue increase of 6.9 percent for August.
Missouri’s gross revenue collection in July was up by .6 percent as compared to July 2010.
The revenue increase is driven by strong individual income tax collection, which was up 9.3 percent over the same time last year. Sales taxes remain stagnant, according to state budget director Linda Luebbering. She blames low sales tax collection on a stubbornly high unemployment rate.
Missouri tax revenue is higher than last year, but a dip in individual income tax collections last month has prompted some concern.
Eleven months through the current budget year, revenue has increased from last year by 2.7 percent to $6.5 billion. However, the state Office of Administration reported Thursday that individual income tax collections were down 1.4 percent from May 2011 to May 2010.