Mark Vieuxco, a Department of Revenue official, told the Joint Committee on Government Finance on Jan. 7 that January produced a “mixed month” in collections and provided a line‑by‑line update on major revenue sources.

“For the year to date, we’ve collected $3.15 billion — $27.9 million above estimate and down 4.4% from last year,” Vieuxco said. He said consumer sales tax was a bright spot: January sales tax receipts were $163.6 million, about $5.4 million above estimate and 4.7% ahead of January 2024. Year‑to‑date sales tax collections were $1.05 billion, $7.5 million above estimate and 2.6% ahead of last year.

Personal income tax was behind estimates. “Year to date, [personal income tax is] $1.298 billion, $16.7 million below estimate, 7.8% below last year,” Vieuxco said; he added that some improvement was expected in February because “last year had some unique factors that will not be present this year.”

Severance tax collections were markedly weak in January. Vieuxco reported $19.9 million in January severance tax versus an estimate of $48 million, and year‑to‑date severance revenues of $147.6 million that were roughly $60 million below estimate and 12.1% below last year. He cautioned that a portion of severance receipts often carry over into the first days of the next month and that February collections likely will look better. He noted the decline largely reflected lower commodity prices over the last two years and that recent colder weather has begun to push natural gas prices and related severance receipts higher.

Corporate income tax produced “a very good month” in January, Vieuxco said: collections were $27.6 million, about $18.8 million above estimate and 46.7% ahead of January 2024. Interest income for the general fund was $11.9 million in January, roughly $450,000 below estimate and down 45.2% from last year; year‑to‑date interest income was $121.6 million, $34.4 million above estimate but 10.7% below the prior year.

On the state road fund, Vieuxco said overall January collections were $135.8 million, $3.1 million above estimate. He noted a $150 million one‑time appropriation that boosted last year’s miscellaneous receipts and explained that removing that item accounts for much of the year‑over‑year decline in certain categories. Vieuxco also said the Department of Highways’ year‑to‑date federal reimbursement estimate had been aggressive (he cited a $551 million annual estimate versus $487.3 million actually recorded to date).

Committee members pressed Vieuxco on causes and outlooks. Dr. Hornbuckle asked whether severance declines were “mostly prices,” and Vieuxco replied that coal prices were about 25% lower than a year ago and natural gas prices had drifted lower but recently had begun rising, which should show up in February numbers. A member asked whether pipeline links to Southern markets had helped; Vieuxco said the reopened pipeline “helped us straighten out some of the infrastructure problems of getting product to market” and that it should narrow regional price differentials.

Vieuxco also described a bookkeeping error that affected the January estimate in the December budget report. He said a departmental collections line — the large annual security dealer fee that is due in January — had been placed in the wrong month in the report, producing an inflated January estimate; the department corrected the line so monthly totals now align correctly.

Why it matters: revenue estimates drive the state’s budget planning and fund highways, education and other programs. The department’s explanation — a mix of timing, one‑time appropriations and commodity price swings — sets expectations that severance receipts may rebound if prices and export conditions remain favorable, while other revenues remain close to or above current estimates.