Jefferson City, Missouri – A recent report by State Budget Director Dan Haug shows that general income collections in Missouri fell noticeably in November 2024. From $1.00 billion in November 2023 to $931.7 million, the data shows a concerning trend in the state’s budgetary situation as income collections declined 6.8 percent compared the same period previous year.
Showing a 4.0 percent drop from $5.04 billion in the previous year to $4.84 billion, the year-to- date numbers for the fiscal year 2025 likewise present a dismal image. These numbers affect several sectors and indicate more general financial challenges the state faces.
Different tax type breakdowns highlight more about the causes of these losses. Major source of state income, individual income tax revenues dropped 6.6% yearly, falling from $3.36 billion the year before to $3.14 billion. Monthly, these collections dropped by 6.2 percent. This downturn is noteworthy since it significantly impacts the financing for important state projects and services.
Interestingly, Pass Through Entity tax collections jumped to $136.9 million while most income streams witnessed losses. This segment has showed notable activity this year but had not previously helped the income in the last fiscal year.
Read also: Kansas City secures $31.4 million for South Loop Park and I-670 infrastructure upgrades
But sales and use tax receipts, which usually gauge consumer expenditure, also dropped. From $1.42 billion, these fell 4.8 percent annually, then decreased sharply in November alone to $1.35 billion. This fall could point to changes in consumer behavior or a decrease in spending.
Not spared, however, were corporate income and franchise tax collections, which dropped 9.4 percent annually to $300.2 million from $331.3 million. With a loss of 19.6% in November, possibly reflecting changes in company profitability or tax policies, the decline was much more pronounced.
Read also: Kansas City supports small businesses with grants for vandalism repairs and security enhancements
On the other hand, all other collections broke the trend by rising 9.4% year over year, therefore providing some hope for an otherwise alarming assessment. Over the year, this category grew from $328.4 million to $359.2 million, then climbed 3.7 percent in November.
Although with a drop of 11.8% for the month, the state also faced rising refunds, which grew by 13.2% yearly to $444.3 million. By lowering the net income accessible for public services, more refunds can further tax the state’s budget.
The terrain has also changed with the change in reporting Pass-through Entity tax collections from Individual Income into its own category; year-over-year comparisons and projections become more difficult. This change is observed as a possible reason behind the apparently low rise in personal income tax receipts.
Read also: Kansas City Zoo unveils plans for state-of-the-art giraffe habitat opening in 2026
Budget Director Haug claims that although the figures from the general income report offer a moment in time and are subject to variations depending on several circumstances. As they prepare for next budgets and economic policies, state officials will probably keep a close eye on these developments.
