Insurance premium tax boosts state revenue
For the month of July, the first of the new fiscal year, revenue on the insurance premium tax was
And the
"About half of the increase for insurance premiums is money that should have been June collections, but didn't process until July," Waterbury said. "The remaining is a growth in the tax that has been occurring over the last several months.
"We did an evaluation of the returns and have found increases across the board."
The tax is collected on all insurance premiums sold in the state -- ranging from health, to auto, to wind insurance for homes, to flood insurance for homes.
"An increase in tax receipts is directly related to an increase in insurance premiums," she said.
In the fiscal year ending
During the recently completed fiscal year, ending
Still, the 2.2 percent rate of growth is better than for most other sources of state revenue during what has become a prolonged period of sluggish tax collections.
Even though the insurance premium tax accounts for a little less than 5 percent of total state revenue, it still has provided a key boost at a time when other sources of revenue are not meeting projections and in some cases not even growing.
For the month of July, thanks in large part to the insurance premium tax, revenue collections were
The estimate is important because it represents the amount of money the Legislature appropriated to fund state government.
For the month of July, sales tax collections, the largest revenue source, were 11 percent or
Revenue collected by the state
Legislators and Gov.
The governor has expressed optimism in recent months that collections from the personal income tax are improving.
[email protected] Twitter: @bobbyharrison9
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