Florida collected nearly $200 million more than expected in January, a report from state economists posted online Wednesday shows.
Florida received $4.07 billion in January, about $199.7 million more than economists’ predictions. That haul was led by $3.46 billion in sales taxes, which was $183.5 million over the estimate.
The report warns the jump was affected by inflation and federal COVID-19 funds that were one-time payments during the pandemic.
“January collections reflect activity that largely occurred in December, which continued to benefit from federal stimulus payments that have now ended; redirected spending from the hard-hit service sector; and some consumers’ ability to draw down atypically large savings that built up during the pandemic,” the report states.
“It is also notable that the Consumer Price Index increased for January, with the all-items index for the last 12 months increasing 7.5 percent before seasonal adjustment,” the report continued. “The immediate response to inflation is an increase in sales tax collections that reflects the higher prices.”
Those numbers came courtesy of the Legislature’s Office of Economic & Demographic Research.
Last updated on March 17, 2022