Indiana didn’t collect as much revenue as predicted in May, due in part to individual income tax collections that came in well below expectations. Still, the state is ahead of projections overall.
The state’s revenue collections last month were nearly 7% below the most recent forecast. While sales tax collections in May were better than expected, individual income tax collections were off by more than 22% from the forecast.
The State Budget Agency says the sharp decline in income taxes is due in part to a timing issue – and that income tax collections for the entire fiscal year, which ends this month, are still more than 4% above expectations.
As Indiana heads into the final month of the fiscal year, the state’s overall revenue collections are still ahead of its most recent projections by more than $64 million.
