(The Center Square) — Florida officials predict tax revenues in the Sunshine State will continue to increase compared to last year’s numbers.
The Office of Economic & Demographic Research held a revenue estimating conference on Aug. 23 and predicted general revenue will grow from August’s estimates of 7.14% to an estimated 8.5% in September. General revenue is expected to increase in dollar amounts from August’s $3.5 billion prediction to $4.1 billion in September.
Corporate filing fees are expected to increase from the August prediction of 2.78% to 3.2% predicted for September. Corporate income tax is estimated to increase to 17.21% in September, from August’s forecast of 1.33%, with an expected collection of $1.01 billion.
Local option sales tax is predicted to drop slightly from 7.66% to 7.51% in September, while net beverage wholesale tax is forecast to increase from 6.68% to 7.06%.
Florida TaxWatch released a new report on the state’s budget, and data shows the state has added $2 billion to its coffers, leading the conference to increase budget forecast for the ninth consecutive time.
The report states Florida’s revenues have exceeded expectations for almost four years, with fiscal year 2023-2024, with general revenue collections being over $1 billion higher than what was forecast by the conference in January 2024.
According to the report, revenue growth is expected to increase by 0.4% in the current year and another 2.4% next year, with a predicted annual growth of 2.3% until at least fiscal 2029-2030. This equates to a ten-year growth of 77.8%, and collections have increased by 54.1%
Earnings on investment forecasts doubled the predictions made in January, producing a two-year increase of over $1 billion. The report points out earnings also exceeded $1 billion during fiscal 2023-2024 and is forecast to reach that again in fiscal 2024-2025.
Sales tax estimates increased by $504.7 million, growing 46.5% over four years, despite sales tax relief enacted by the Legislature. Tourism is predicted to have an increase of 1.2%.
However, the report states the increase is due to inflation and higher prices as a result. The report also says if inflation continues, families will be more restricted and this will affect spending on luxury items, including vacations.
Florida TaxWatch recommended lawmakers rein in spending, as the estimating conference has also predicted sizable deficits in some state programs in coming years.
