Mississippi’s revenue collections in May fell short of legislative estimates by about 1.36%, according to a report from the Legislative Budget Office. The state collected $7.5 million less than projected for the month.
Despite the monthly dip, overall revenue for the fiscal year remains above estimates. With one month remaining, state revenues are $177.1 million, or 2.63%, above the full-year estimate of $7.552 billion, the report shows.
Through May, total collections are $76.9 million, or 1.13%, higher than the same period last year. May’s General Fund collections declined by $20.3 million, or 3.61%, compared to the previous year. This decrease was driven by lower sales tax revenue, which was $12.4 million below last year, and corporate income tax receipts, which fell by $7.6 million.
Individual income tax collections for May increased slightly, by nearly $300,000, despite ongoing phase-outs of the state income tax. The state plans to reduce its income tax rate from 4% to 3.75% in the coming year.
Unemployment in Mississippi remained steady at 3.8% in May, unchanged from the previous month, the report states.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
