(The Center Square) – Michigan’s March tax and fee collections were down 24.7% from the year before and fell nearly $170 million short of budgeted estimates.
Sales tax was $763.9 million, down 7.7% from a year before while the repeal of Michigan’s single business tax, business tax and corporate business tax led to a 91.8% decrease in collections year-over-year, nearly $55 million short of estimates.
Michigan’s total tax and fee collections are down 4.2% from a year ago for the fiscal year and are nearly $364 million short of budgeted estimates for the fiscal year.
The Michigan Senate Fiscal Agency said the drop is due to lower-than-expected sales tax and CIT collections along with larger than expected individual income tax refunds.
Net income tax collections were down 60.8% from a year before and were $81.5 million less than projections for March.
“Individual income tax refunds totaled $1.3 billion, an all-time record that was 26.2% above the previous all-time record set in February 2024 and 66.7% above the level in March 2023,” the report says.
