The District is anticipating a big boost in revenue in the next two years — and that could mean another series of tax cuts for D.C. businesses.
The District projected $7.16 billion in revenue for fiscal 2017 in a September report but has revised that to $7.3 billion, according to revenue estimates released Tuesday. Revenue for fiscal 2018 was originally projected at $7.373 billion but was revised up to $7.437 billion, a boost of about $64 million. The city’s fiscal year starts Oct. 1.
This comes as the District also reported $221 million in additional revenue for fiscal 2016 based mostly on lower tax refunds and higher cost recovery from Medicaid. About $67 million is what is called “recurring revenue” from increased sales and business taxes and fines and fees.
The recurring revenue is important because it is tied to a schedule of budget cuts the D.C. Council passed in 2014 that kick in when that revenue rises above projections. The tax cuts are then identified in late February by D.C.’s chief financial officer and official revenue is certified in September. The tax cuts then kick in the following calendar year.
The latest projections could set into motion tax cuts for 2018 if revenue continues to come in at expected levels.