Tax & Accounting News

Florida Tax Collections Beat Projection By $141 Million

Sonu Shukla
Florida Tax Collections Beat Projection By $141 Million

According to a report issued by this week by the Florida Legislature’s Office of Economic and Demographic Research, the state had $3.23 billion in net general revenue during the month of October. 

This exceeds economists’ August prediction by a notable $141.4 million.

Per the report, that amount would have been even higher if it wasn’t for Hurricane Ian, a Category 4 storm that made landfall on September 28, devastating portions of Southwest Florida. The Ft. Myers and Sanibel Island areas were particularly hard hit. 

Credit: Frank Ramspott/Getty Images

Specifically, the Office of Economic and Demographic Research noted, “At least $67 million was lost to the crisis within the hurricane-affected areas and the general dampening of sales activity elsewhere, with another $16 million likely delayed by the Department of Revenue’s emergency order to push back the (tax) due date in six of the hardest-hit counties.”

This is not the first time economists have been off in their tax revenue predictions recently. In September, the Sunshine State’s general-revenue collections were $471.2 million over the projected amount.

And, in a report released Wednesday, December 28, it was estimated that general-revenue tax collections were 14.1% higher than the projected rate for November as well. 

The Tampa Bay Times recently reported on a statement made by Florida Governor – and rumored Republican Presidential nod hopeful – Ron DeSantis last month.

“When COVID hit, they’re like, ‘Oh my gosh, it’s going to be a disaster. Then they realize, like OK, after a few months of this, like actually people are coming to Florida because we were, you know, open,” DeSantis said, “And we saw things really take off. And we are always bringing in more revenue than they were projecting for the budget forecast. Finally in August, they revised it (projections) upward.”

Credit: Glow Images/Getty Images

It is worth noting that high inflation has increased sales tax collections due to higher prices on goods and services. 

Additionally, despite increased spending, Floridians are depleting their personal savings.  The savings rate stood at 2.3% in October 2022, down from a high of 33.7% in April 2020 when stimulus checks began hitting accounts. 

What do you think about Florida’s general-revenue tax intake?

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Sonu Shukla

Sonu Shukla

Sonu Shukla is a CPA, accountant, and tax preparer based in Orlando, FL. Sonu Shukla can assist you with your tax preparation and planning needs. Sonu is more than just another accountant in Orlando, Florida; he is a small business owner himself. It is a position in life that grants him the perspective and insight to emphasize with his clients, bringing them the best service possible. A Certified Public Accountant and a Certified Financial Planner, Sonu possesses the skills, education and experience to demonstrate unerring business acumen and passionately planned financial strategies. Being proactive is key for Sonu, tailoring highly efficient tax plans for his small business clients, all in a one on one environment where he and the client can bounce ideas around until every detail is worked out.

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