Weak holiday sales left Maryland’s budget experts writing down 2017 revenue projections by $60.6 million Wednesday.
The state Board of Revenue Estimates cut its projections for the state’s fiscal year 2017 collections to $17.02 billion. The entire $60.6 million decrease was due to a significant cut in expected sales and use tax collection growth.
Sales taxes are unlikely to grow as fast as previously anticipated, Comptroller Peter Franchot said in a statement. Lackluster wage growth and a stagnant economy are affecting consumer spending and, by extension, tax collections.
“This reduction in estimates reflects very weak sales during the holiday shopping season and the month of January and translates to reduced revenue for the state,” Franchot said. “What’s happening in Maryland mirrors what’s happening in the nation as a whole. Consumers hope the economy is improving but they’re being cautious.”
The new projections also cut down previously expected growth in fiscal year 2016 sales and use taxes. The board wrote down 2016 sales and use taxes by $66 million.