State revenues exceed July expectations

AUGUSTA — State general fund revenues for July were about $135 million, exceeding the forecasted revenues by $7.1 million, or 6 percent, Gov. Angus King announced.

“This is obviously good news, but one month’s figures does not a trend make,” King said Wednesday. “We continue to be cautiously optimistic, however, about the state’s general fund revenues. The results for July are 9 percent over revenues for the same month last year.”

Most of the money came from sales and income taxes. Sales tax receipts in July, the first month of the state’s new fiscal year, were just shy of $60 million, or 4 percent above forecasted, and 10 percent above that for July 1995. July sales tax receipts reflect June retail sales.

“When the state’s sales tax revenues increase, we know that Maine businesses are experiencing a rise in sales. This trend should benefit us all,” King said.

Personal income tax revenue for July was $42 million, 2 percent above forecasted but down slightly from the same month last year. Revenue from corporate income tax, cigarette tax and tobacco tax were also above expectations. Revenues from the lottery continued to run 15 percent below expectations, continuing a trend that began during the last fiscal year.