July State Revenue Misses Projections

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State revenues for July were $5.2 million below the latest forecast, but slightly above collections during the same month the previous fiscal year. The Indiana State Budget Agency says corporate tax collections were more than 30 percent lower last month than in July 2013.

August 13, 2014

News Release

Indianapolis, Ind. -- The monthly revenue report of July 2014 state tax collections was released today. Charts "visualizing" the July 2014 data (year-over-year growth and comparisons to monthly estimates) are also 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 July were $1,042.9 million, which is $5.2 million (0.5%) below the estimate based on the December 20, 2013 forecast, but $2.2 million (0.2%) above revenues collected in July 2013.

--Sales tax collections were $625.8 million for July, which is $7.4 million (1.2%) above the estimate for the month.

--Individual income tax collections totaled $340.7 million for the month, which is $3.9 million (1.2%) above the estimate for the month.

--Corporate income tax collections were $14.9 million for July, which is $13.8 million

(47.9%) below the estimate for the month.

Commentary

For the first month in fiscal year 2015, state general fund revenues were $5.2 million below the estimate, but $2.2 million (0.2%) above collections in the prior fiscal year.

Sales tax collections in July 2014 were $7.4 million (1.2%) above the monthly estimate and $33.8 million (5.7%) higher than in July 2013.

Individual income tax collections for July 2014 were $3.9 million (1.2%) above the monthly estimate, and $21.5 million (6.7%) above revenue in July 2013.

Corporate tax collections were below estimate by $13.8 million (47.9%) for the first month of the fiscal year. Corporate adjusted gross income was 31.3% lower than revenue collected in July 2013, and refunds were 49.1% higher in July 2014 than July 2013. The December 2013 forecast took into account the rate reduction that became effective on July 1, 2014.

Source: Indiana State Budget Agency