State Revenue Falls Short Of Projections For October
Indiana last month faced the first significant revenue shortfall this fiscal year, collecting $64 million less than expected.
A processing error shifted more than $86 million tax dollars collected in September to October’s balance sheets. After accounting for that shift, the state fell short of its target revenue by nearly 6 percent last month.
Through a third of the current fiscal year, that puts Indiana about $61 million below target, which is about 1.3 percent off the mark.
The biggest losses in October came in sales tax and corporate income tax collections, which were off by about $27 and $35 million, respectively. Corporate taxes in particular fell short, 107 percent below projections.
The State Budget Agency says higher corporate refunds contributed to that shortfall. Indiana will release a new revenue forecast next month.
Note: An earlier version of this story stated four-month revenue is down 6 percent. Is is in fact down 1.3 percent.