Revenues for the state of Maine came in $55 million above estimates in April, increasing the surplus to nearly $71 million with two months left to go in the budget year.
State officials say Maine companies and individual taxpayers paid more in final tax payments in April than expected, fueling the significantly higher than expected revenues.
“We are seeing such consistent growth on that line at this point that unless something significant changes in the near future, you can attribute it to real growth in the economy,” says state Finance Commissioner Alec Porteous.
Most of the state’s other sources of revenue also showed growth. While sales taxes tallied about a $1 million less than the $105 million projected for April, they remain ahead of estimates for the year.
Corporate income tax was up in April, by 45 percent. “Some of it may be capital gains - the stock market had a good year in 2017. But I think, clearly, when you look at the Maine economy, it is doing better than we had estimated,” says Mike Allen, associate commissioner for tax policy.
State finance officials say that, so far in May, there are no indications that the growth in the state economy is slowing, and that makes it likely that the state will end the budget year with a revenue surplus.
