Indiana’s most recent revenue forecast – which came out mid-December – is already having a positive impact on the state’s overall tax collection picture.
Prior to the December forecast, only individual income taxes were performing better than expected this fiscal year. Sales and corporate income taxes were below projections, as were total tax collections.
But the first monthly revenue numbers since the new forecast show only corporate taxes coming in below expectations. The biggest shift was in sales taxes – prior to the new forecast, sales taxes were about 88 million dollars off the mark. And yet, after December’s only modest collections, the new targets show sales taxes are nearly 33 million dollars better than expected.
Total tax collections are also above projections for the first time this fiscal year – 35 million dollars better than predicted.