State revenues come in lower than April forecast
Indiana has fewer dollars pouring into the general fund than state officials estimated when they made their forecast in April, with the biggest decline in corporate income tax collections.
The State Budget Agency reported Monday that year-to-date general fund collections totaled almost $4.8 billion, or 2.5 percent less than what was the forecast and only slightly below revenues reported in the same period one year ago.
The agency also reported that year-to-date sales and individual taxes were slightly below the April forecast but 2.2 percent more than what the state collected in the same period in the last fiscal year.
Also down slightly through the current fiscal year were individual income tax collections, which were $1.8 billion or .3 percent below the forecast. But those collections were 2.8 percent more than what the state took in during the same period in the last fiscal year.
Meanwhile, corporate income tax collections were 52.9 percent below the forecast and 45.7 percent below the amount the state took in during the same period in the last fiscal year. Part of the reason collections are down is that corporate refunds have risen as the Department of Revenue processes refunds more quickly.
Also, corporate tax collections vary greatly from month to month, the agency also reported. Collections depend on when corporations file their returns, how quickly they are processed, whether they claim refunds, among others.
The agency also said that more corporate tax dollars are paid in the final six months of the fiscal year compared to the first six months. The current fiscal year ends June 30.
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