INDIANAPOLIS – Indiana coffers took in about $1.37 billion worth of taxes in November but remained below expectations for a second straight month of the fiscal year which began in July.
The revenue forecast predicted revenues of $1.41 billion but collections were short $45.8 million, or 3.2% under projections. There is $115 million less than expected year-to-date, per a monthly revenue report.
That’s a smaller gap than in October when the fund took in about 8% less than projected.
The state was primarily behind on its sales and corporate income tax collections.
An accompanying commentary from the State Budget Agency noted that estimates for use tax revenue are off because the latest budget bill directs gasoline use tax revenues away from the General Fund and toward road and bridge funding. That was about $6 million in November.
But sales tax revenues were still down nearly $41 million compared to the monthly estimate. The commentary said November’s -0.5% year-over-year growth “mostly reflects October economic activity.”
The state still expects those collections to grow about 4% year-over-year, but it’s a lower rate than in recent years.
And the General Fund lost out on corporate tax collections, down about $21 million less than expected, or about $148% under.
The state made more money off interest than expected and stayed near its targets on other revenue sources, but was still “outweighed” by lower-than-expected collections from sales tax and corporate income tax.
The monthly collections fund Indiana’s biannual budget.
See the complete Indiana Capital Chronicle story here.
