The latest surplus is about $20 million more than last month's figures, and on top of $235 million in surplus and $370 million in projected revenue growth built into the state budget in March.

Income tax revenues have grown at a 11.4 percent clip so far this fiscal year, corporate tax revenues hit 28.6 percent and severance taxes from oil and gas extractions soared at 44 percent, the new state figures show.

"2004 is probably going to be one of the best growth years," Tax Commission Chief Economist Doug Macdonald told Utah lawmakers Wednesday. "We might as well savor this moment."

As of early April, three months before the fiscal year ends, tax receipts have exceeded expectations and are nearing the projected amount for the entire year. "We've almost reached our target with nine months" of receipts, Macdonald said.

The question, though, is whether the figures will hold up as tax returns are processed. The state may have been taking in too much and may have to ship some of that back to individual income taxpayers, who are footing a majority of the surplus.

Wednesday's surplus numbers come on top of other encouraging indicators, Macdonald said. Employment is "steadily improving," up 3 percent year to date, and the unemployment rate is at its lowest since 2000. Construction of residential homes is up 8 percent so far this year, sales tax revenues are up 8.5 percent and withholding taxes grew at 7.2 percent.

Richard Ellis, the governor's budget boss, cautioned that the current numbers could change by next month as checks for tax returns are cut and mailed.

"But I think its a good sign," Ellis said. "It shows we're going to have some extra money, but I don't know at what level."

tburr@sltrib.com