Indiana tax collections are lagging, more than $65 million below projections in the first two months of the fiscal year. However, the state budget director says it’s not yet time for serious concern.
Indiana took in $51 million less tax revenue last month than expected, including individual income tax collections that were more than 12% below projected levels. And that leaves the state more than 3% below where it was this time last year.
The State Budget Agency says the new state budget redirects some taxes to the Motor Vehicle Highway Fund, which accounts for some of the drop in revenue. And budget director Brian Bailey says only two months of collections makes it difficult to identify a potential cause:.
“I think we’ll have a better idea once this next month’s revenue comes in. At that point we’ll have a quarter and we may see a trend emerging or we may see that there’s not a trend yet and we’ll just keep an eye on it.”
A lone bright spot, corporate tax collections are more than 46% above projections and more than 4% better than last fiscal year.
