State Budget Director John Hicks reported that December’s General Fund receipts totaled $1,525.4 million, a 3.4 percent decrease in collections compared to December 2024 totals. The official revenue forecast calls for General Fund revenues to decline by 1.3 percent in FY26.
Based on year-to-date collections, revenues can fall 1.9 percent over the final six months of the fiscal year and meet the estimate.
Regarding December General Fund revenues, Hicks noted that “Receipts were $53.4 million less than what was collected in December 2024 due to a $60.7 million decline in the major business taxes and the timing of receipts from the public service component of the state property taxes, which are expected to be received in January. December receipts had increases in the largest two accounts, individual income and sales and use taxes. Individual income receipts grew 4.2 percent, including a 6.1 percent growth in withholding taxes. Sales and use tax collections rose by 2.5 percent. Both wages and spending grew for the month and have anchored General Fund collections through the first half of FY26.”
Among the major accounts:
• Sales and use tax receipts grew 2.5 percent in December. Year-to-date revenues have increased 5.3 percent.
• The major business tax receipts lag behind last year’s record pace, declining 20.8 percent for the month and 41.9 percent year-to-date. December is typically one of the largest four months of collections each year since calendar-year filers make their final estimated payments in December.
• The individual income tax rose for the fifth time in six months, growing 4.2 percent in December. Together, withholding and declaration payments accounted for most of the gains. Year-to-date collections in the income tax have increased 8.7 percent. The $2.3 billion in withholding revenue through the first six months of FY26 encompasses 87.5 percent of the individual income tax collections.
• Property tax collections fell 11.2 percent in December, largely due to timing issues with the public service company account. Classes of property with a relatively small number of filers are prone to large monthly swings during the condensed payment cycle.
• Cigarette tax receipts increased 8.9 percent in December. For the first six months of the year collections have grown 1.7 percent despite a string of five consecutive annual declines.
• Coal severance tax receipts had their second monthly increase this year, growing 6.6 percent. Year-to-date revenues in this account have fallen 7.4 percent.
• Income on investments of $22.8 million was 14.4 percent lower than December 2024.
Road Fund receipts for December totaled $137.3 million, a 0.9 percent decrease from December 2024 levels. Year-to-date receipts have increased 0.2 percent. The official revenue forecast calls for a revenue decline of 1.0 percent for the year. Given the year-to-date collections, receipts can fall 2.2 percent over the remainder of the fiscal year and still meet the estimate.
Among the accounts, motor fuels receipts declined 4.4 percent in December and are down 3.4 percent year-to-date due to a 1.4 cent-per-gallon decrease in the tax rate on motor fuels effective in July 2025. Motor vehicle usage revenue rose 4.9 percent in December and has increased 3.9 percent year-to-date. License and privilege receipts rose 22.1 percent for the month and are up 7.0 percent for the year.
Office of State Budget Director