State Revenues Miss Projections
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowState revenues are nearly $74 million below forecast for the first quarter of the fiscal year. The state budget agency says without the redirection of sales tax collections overall revenues would have increased, compared to the same period last year. October 4, 2013
News Release
INDIANAPOLIS, Ind. – The monthly revenue report of September 2013 state tax collections was released today.
Results:
State general fund revenues for September were $1,460.4 million, $8.0 million (0.5 percent) below the target based on the most recent forecast updated on April 16, 2013.
For the first quarter of FY 2013, total general fund revenues were $3,452.2 million.
Sales tax collections were $4.7 million (0.8 percent) below forecast for the month and $32.2
million below forecast for the quarter. HEA 1001-2013 redirected 1 percent of sales tax to the motor vehicle highway fund. Absent that change, quarterly sales tax collections would have only been $14.6 million below forecast.
Individual income tax collections totaled $541.4 million for the month, $26.8 million (4.7 percent) below forecast but $14.0 million (2.7 percent) above collections for the same month last year.
For the quarter, individual income tax collections were $81.7 million below forecast at $1,166.1 million.
Corporate income tax collections were $3.7 million (1.8 percent) below forecast for the month, but $10.6 million above target for the quarter.
Gaming revenues were $5.9 million (16.2 percent) below target for the month and $3.4 million (4.7 percent) below forecast for the quarter.
Commentary
Through the first quarter of FY 2014, state general fund revenues were $73.5 million (2.1 percent) below target based on the April 16, 2013 revenue forecast.
State general fund revenues were 0.9 percent lower than in the first quarter of FY 2013.
HEA 1001-2013's redirection of 1 percent of sales tax collections to the motor vehicle highway fund reduced general fund collections by $17.6 million for the three months.
Absent that change, sales tax collections would have increased by 3.5 percent over the same period last year. The April 2013 forecast projected sales tax collections to grow by 3.9 percent for the year.
Individual income tax collections were $81.7 million below target for the quarter and $58.4 million below the first quarter of FY 2013.
Transfers made to the LOIT reserve fund in the first quarter totaling $59.3 million resulted in a year-over-year reduction in individual income tax revenue; there were no LOIT reserve transfers in the first quarter of FY 2013.
These transfers were made in accordance with the December 2012 revenue forecast.
Another factor contributing to the year-over- year reduction in individual income tax revenue
is the modest growth in withholdings, which have only grown 0.4 percent year to date.
Through the first quarter of FY 2014, corporate income tax collections were $10.6 million
(4.6 percent) above the forecast target, but 7.9 percent below the same period last year.
Source: The Indiana