(Via the Wyoming Taxpayers Association) The co-chairmen of the Consensus Revenue Estimating Group (CREG) released their quarterly update on Friday, July 27, highlighting the state's revenue collections by major source. The report provides a comparison of revenue collections received from July 1, 2017 through June 2018 to the annual projections made in the January 2018 Wyoming State Government Revenue Forecast.
The report indicates actual General Fund (GF) and Budget Reserve Account (BRA) revenue collections are exceeding the forecasted pace by $56.5 million or 4.4 percent through June 2018 ($315.7 million, or 24.7 percent, ahead when including capital gains and losses).
Sales and use taxes directed to the GF are ahead of the forecast pace by $27.1 million, or 6.1 percent. This is especially important since sales and use tax revenue is both the largest revenue category for the GF and a vital revenue source for cities, towns, and counties. Year-over-year statewide sales and use tax collections are up across the majority of the state, with only four counties (Crook, Goshen, Washakie, and Weston), as well as a handful of municipalities, recording year-over-year declines for FY 2018.
You can read the entire report here.
According to the Wyoming Department of Administration & Information, total taxable sales in Wyoming grew 17.9 percent to $3.9 billion in the first quarter of 2018, based on sales and use tax collections.
"Increases occurred in most economic industries, with the largest boost in mining (including oil & gas extraction),
which accounted for over one-third of the total increase. The mining sector experienced a year-over-year expansion of 45.1 percent due to increased sales of equipment, supplies, and services from new energy exploration and production activity (Wyoming does not impose sales tax on the production of minerals)."
The sales tax figures for this quarter are still 45.3% less than the first quarter of 2014, which was before the overall energy production downturn. Because more than 1/6 of collections come from mining, changes in sales and use tax collections have greatly fluctuated due to changes in mineral activities. Construction was an industry that experienced a decline, however.
"Manufacturing, wholesale trade, and machinery & equipment leasing, and other services sectors, which are closely related to mineral extraction, each increased around 20.0 percent. The public administration sector, which reflects automobile sales, showed an increase of 7.1 percent over the year. The retail trade industry, the largest in terms of sales tax contribution, grew 15.5 percent. Across the state, 21 out of 23 counties experienced increases in taxable sales, led by Converse County (64.2%). Two other counties, Sublette and Platte, demonstrated over 30.0 percent expansions, respectively. Counties with large numbers of mineral activities generally experienced faster growth due to increased drilling. "
You can read the entire report for the first quarter of 2018 by clicking here.