Corporate tax collections biggest drag on state revenue

In fiscal year 2015 (July 1, 2014 through June 30, 2015) corporate tax collections peaked at $714.1 million or 12.9 percent of overall collections. Corporate tax collections for the just-completed fiscal year are $150 million less than the amount collected two years ago. For fiscal year 2017, which ended June 30, the state’s corporate tax collections were $564 million, or 10.4 percent of the total collections, according to figures compiled by legislative staff.

During that time, the Legislature passed and Gov. Phil Bryant signed into law almost 50 tax cuts that have taken more than $300 million out of the general fund revenue stream. The bulk of those tax cuts, though not all, have been directed toward businesses.

And the start of the phase-in of the largest of those tax cuts, $435 million over 10 years, begins this year. While the tax cut is for businesses and on personal income, the first year of the phase-in is directed solely at providing additional relief of about $18 million for businesses.

Daily Journal