Len Lazarick, The Examiner
2007-12-12 08:00:00.0
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BALTIMORE -

State tax collections for November were ahead of last year’s numbers, as originally projected, Comptroller Peter Franchot announced Tuesday, reversing some of his gloomier reports of falling revenues earlier this fall.

General fund revenues for November totaled $812 million, 7 percent ahead of the same month last year, Franchot said in his monthly revenue report to the governor and legislative leaders.

Individual income taxes were 2.8 percent higher than a year ago, and sales tax receipts grew 5.7 percent, “the second-best performance in 15 months,” Franchot said.

In September, Franchot said revenues were falling $132 million behind official estimates, with most of the decline coming in sales tax receipts, which grew only 2.5 percent.

“Very strong growth in the food and beverage sector offset weakness in the apparel and general merchandise sectors” last month, Franchot said, but there was “very weak growth of 0.2 percent” in October, “so we have yet to see a trend of consistent strong growth occurring.”

Lottery revenues are up 8.7 percent for the year, and Mega Millions ticket sales are up 60 percent. Estate taxes increased 43 percent.

Only the tobacco tax is in decline, falling 5.4 percent. The legislature enacted a $1-a-pack cigarette tax increase last month to help fund increased health insurance, and that raise will go into effect Jan. 3. But analysts expect that after those increased taxes come in, tobacco revenues will steadily decline in future years as more people stop smoking.

A ban on smoking in all restaurants and bars in Maryland begins Feb. 1.

“Taken together, revenues are performing as expected through November,” Franchot said.

llazarick@baltimoreexaminer.com