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News Release

May 5, 2009 – Ohio tax commissioner: Income tax revenue fell short in April

COLUMBUS, Ohio – Income tax revenue into the state’s general revenue fund fell $322 million short of projections during the month of April, Ohio Tax Commissioner Richard A. Levin said today.

State officials had been watching April revenue carefully because of the month’s importance in determining total income tax receipts for the fiscal year. Annual tax returns for tax year 2008 and the first quarterly estimated payment for tax year 2009 were both due in April.

The results were disappointing. For the month, net income tax revenue into the state’s General Revenue Fund was $1,129 million, or 22 percent short of projections.

The fall was even greater when compared to April, 2008, when the state General Revenue Fund realized $1,752 million in net income tax revenue. Last month’s net income collections fell almost 36 percent short of that mark.

“The national economic recession is injecting considerable downward pressure and uncertainty on state tax collections throughout the United States,” Levin said. “Ohio has not been immune to these trends.”

In December, Fiscal Year 2009 revenue estimates were revised downward to take account of the changing national economic conditions. The December forecast is that state income tax revenue would fall 9 percent in Fiscal Year 2009 when compared to the previous year – by far the largest such drop in the history of the tax. In fact, through April, income tax receipts are 15 percent lower than the 2008 pace.

Levin said that, through April, income tax receipts are $397 million below the current Fiscal Year 2009 estimate. Based on that income tax performance and other factors, the Office of Budget and Management indicates that there may be a Fiscal Year 2009 budget gap of at least $600 million and potentially $900 million or more.

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News media with further questions should contact John Kohlstrand at (614) 644-3858. For answers to specific taxpayer questions, individual taxpayers should call (800) 282-1780; business taxpayers should call (888) 405-4039.