July Mich. tax revenue $50M less than expected
LANSING, MI – Michigan tax revenues for the month of July came in about $50 million less than expected.
Senate Fiscal Agency senior economist Jay Wortley said Monday that sales tax revenue is down because people are buying less.
Those who have lost their jobs aren't paying income taxes, and businesses are paying less because profits are down.
The 3% monthly shortfall is worsening the state's financial woes and leaving less federal recovery money for the budget that starts Oct. 1.
It's the third month in a row that revenue for the general and school aid funds has been at least $50 million below projections made at the May revenue estimating conference.
Wortley says the downward trend "is adding up to big numbers" that are hurting the state budget.