Revenue for the fourth and fifth months of 2018 found the black and put fiscal year 2018 a positive final month away from collections outpacing estimates.
S.D. Bureau of Finance and Management reported April’s collections coming in $4.2 million above estimates with the Bank Franchise Tax ($4.7 million) being the month’s biggest winner while May’s collections came in nearly $700,000 in the black with the Insurance Company Tax ($3.6 million) as the month’s main contributor.
After a descent in revenue collections in March, the consecutive months’ ascensions leave the state’s collections $5 million above the revised estimates adopted by the legislature during the 2018 session.
A stain in the state’s currently rosy revenue picture is Sales and Use tax collections for FY18 are more than $5.2 million below estimates.
With one month to go in the fiscal year, the current state of revenue collections can be construed as reason for cautious optimism.
“The state’s in a relatively good position with revenue, at the moment,” ASBSD Executive Director Wade Pogany said. “With one month left in the fiscal year and being ahead of projections, there’s reason to be positive we’ll finish out the year in the black.”