State tax receipts don’t meet projections in August

Details
Published: Tuesday, 16 September 2014 21:14

INDIANAPOLIS – State tax receipts fell 1.4 percent below projections in August, but revenues remain ahead of last year’s totals.

The Indiana State Budget Agency released its monthly report on revenue collection for the state’s main checking account Sept. 10. It showed tax receipts for the month were $974.9 million, which is 2.8 percent less than projections.

Despite the overall deficit, sales tax collections were 1.3 percent higher than the monthly estimate. The state collected $601 million in taxes from residents – up 6.2 percent from August of 2013.

But corporate tax collections were well below projections – down 85 percent. That’s the second month in a row that corporate tax receipts missed estimates by double-digits. But because corporate taxes are such a small part of the state’s overall revenue, the hit is not significant. About 80 percent of the state’s tax revenue comes from sales and income taxes.

State Budget Director Bryan Bailey attributes the $13.1 million corporate tax miss to refund payments exceeding anticipated tax collections.

Lawmakers are closely watching state revenues in preparation for writing the next two-year state budget, which will be approved in 2015.

 

Report from the State Budget Agency:

The monthly revenue report for August 2014 state tax collections was released Sept. 10. Charts visualizing the August 2014 data (year-over-year growth and comparisons to monthly estimates) also are located on the Management and Performance Hub website under the State Tax Revenue section: http://www.in.gov/mph/staterevenue.html. 
 
Results 
 
  • State general fund revenues for August were $974.9 million, which is $27.9 million (2.8%) below the estimate based on the December 20, 2013 forecast, but $23.7 million (2.5%) above revenue in August 2013. 
  • Sales tax collections were $600.6 million for August, which is $8.1 million (1.3%) above the estimate for the month and $35.7 million (6.2%) above revenue in August 2013. 
  • Individual income tax collections totaled $337.5 million for the month, which is $12.5 million (3.7%) below the estimate for the month, but $19.5 million (6.4%) above revenue in August 2013. 
  • Corporate income tax collections were $13.1 million below estimate for the month. 
 
Commentary 
 
In the first two months of fiscal year 2015, state general fund revenues were $33.1 million (1.6%) below the estimate, but $25.8 million (1.3%) above collections in the prior fiscal year. 
 
During this period, both sales and individual income tax collections were higher than the first two months of fiscal year 2014. 
 
Sales tax collections for August 2014 were $35.7 million (6.2%) higher than in August 2013. Total fiscal year 2015 sales tax collections are $69.5 million (6.0%) above the same period in fiscal year 2014. 
 
Individual income tax collections for August 2014 were $19.5 million (6.4%) above revenue in August 2013. Total fiscal year 2015 income tax collections have grown by $41.0 million (6.6%). 
 
Corporate tax collections were below estimate by $13.1 million in August 2014 because refund payments exceeded anticipated tax collections. 
 
  
Aaron Hoover
Ace Hardware
Habitat
FNB Monterery
Budd Insurance
Pulaski Health Care Center - Parkview
Pulaski Health Care Center
WKVI Side