Florida Tax Revenues Drop Nearly $900 Million Due to Pandemic

first_imgThe state of Florida may have lost nearly $900 million in tax revenues in April, with the coronavirus halting tourism and other industries on which our economy depends heavily.Last March, the state Legislature approved a $93.2 billion budget that it was preparing to send to Gov. Ron DeSantis for his signature.However, the session to approve the budget took place as DeSantis was beginning to shut down some businesses while implementing stay-at-home measures.Until that point, Florida officials were expecting to take in about $3 billion in tax revenues last month, but learned this week that they fell short by $878 million.A monthly revenue report from the Legislature’s Office of Economic & Demographic Research reflects the effects of the pandemic and the stay-at-home orders on the state’s tax income.“The presence of coronavirus in Florida presented its most serious threat to the sales tax forecast, especially to those taxes collected from tourists,” explains the report. “In addition, critical supply chains were already interrupted by the impact to other countries and retail sales displaced as a result of social distancing and crowd-avoidance behaviors.”Net revenue for April was projected to be $2.984 billion, but ended up at $2.106 billion.Sales tax revenues from tourism were down 24.1 percent, or $598.2 million.Other revenue sources, including corporate income taxes, highway safety fees and corporate filing fees, collectively earned $323.1 million below previous estimates, due to new state orders allowing delayed payments until June or later.However, revenue from the documentary-stamp, intangibles, beverage, tobacco and severance taxes and earnings on investments exceeded projections.“Together, these sources generated a total gain of $40.9 million for the month; however, some of these sources are expected to experience losses in the coming months as lagged economic effects begin to appear,” the report said.There is no word on when Gov. DeSantis plans to sign the budget, which is scheduled to take effect July 1.State Budget Set, with Money for Teacher Pay and Coronavirus Reserveslast_img

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