The Office of the Comptroller released its detail of the November 2011 distribution of local income taxes.  According to the electronic message, “The November distribution totals $1.169 billion, a 31% increase from 2010.”  While this may seem like a substantial increase, it is actually below the November 2008 distribution of $1.2 billion.

The November distribution, in any year, is subject to large variability, as it includes not only ongoing withholdings from current taxpayers, but several reconciliations from previous quarterly amounts.  The timing of income tax payments may also play a role as some taxpayers may choose to make fourth quarter contributions in the third quarter.   The variability in this particular distribution makes it a notoriously unreliable indicator of the overall health in reported income or tax yields.

The November 2011 distribution is composed of the third quarter withholding and estimated tax receipts and late second quarter withholding for tax year 2011, and the November adjusted final distribution.  From the electronic message:

Every county experienced an increase in this distribution; several of the counties showing very strong growth received no adjusted final distribution last year.

The tables listed below provide a detailed breakdown of the components of the distribution:

• Table 2 – adjusted final distribution totaling $316.2 million, which grew by almost 150%
• Table 3 – third quarter distribution of $852.6 million, which grew by 11.5%
• Table 3A – provides further detail on second and third quarter withholdings and estimated tax receipts

Other details provided as a part of the distribution:

• Table 4 – county net tax liability for the past two years
• Table 5 – number of tax returns posted through the adjusted final distribution
• Table 5A – returns accounted for in the adjusted final distribution

The disparity grant will be the only distribution made during the month of December.  The next distribution of local income tax will take place on January 31, 2012.

If you have any questions about the November 30 distribution, please contact Judith Oberist of the Revenue Administration Division at (410)260-7606.