The state’s revenue numbers for September include the impact of the sales tax holiday, expanded to 10 days this year and including nearly anything under $500. And there’s good news and bad news in those figures.
Non-auto sales tax numbers came in well more than double the budget forecast for the first week of August. The budget estimated $249 million for sales tax on everything but cars, but the total that came in was $815 million. That's a 226.9% increase, and it brings the non-auto sales taxes year-to-date to 25.3% over estimates.
The state's estimates were low because it was expected people would shift planned purchases to buy in that period. The state had set aside $750 million to pay the sales tax instead of buyers. Office of Budget and Management director Kim Murnieks said the expectation was that people would adjust their purchasing plans and buy things during the sales tax holiday.
“But we do not see an impact on the other days and weeks of the month," said Office of Budget and Management director Kim Murnieks sMurnieks said. "So as a result, our non-auto sales tax receipts for the month were more than $500 million above what was our lower estimate.”
This year's sales tax holiday applied to nearly everything under $500, from back-to-school clothing and educational items to appliances and furniture. Restaurants were also included, though alcohol was not. Also excluded were marijuana or tobacco products, cars and boats.
Murnieks said customers may not have benefited as much as predicted, but the state gets a break.
“Essentially we will make a less than anticipated a lower than anticipated transfer out of that fund into our general fund this year for this particular sales tax holiday period," Murnieks said.
The September report shows the state’s total revenues are at 2.8% over forecasts.
