Tepid Tax Collections Start State Fiscal Year

Aug 9, 2016

Indiana tax collections fell short of estimates in July 2016.
Credit Eric J Paparatto / https://www.flickr.com/photos/ejpphoto/

Indiana’s new fiscal year got off to a slightly underwhelming start, continuing the streak of lackluster beginnings to its fiscal years under Governor Mike Pence.

In the four starts to a fiscal year during the Pence administration, the state’s tax collections came in less than projected each year.

It’s a slim margin this year – a little more than $7 million off the mark and less than one percent less than expected.

Individual income taxes did well in July, nearly $20 million better than projections.

But corporate income taxes fared poorly, at more than 45 percent less than expectations.

July also marked another off month for sales taxes which came in $18 million below target.

That’s 17 out of the last 19 months sales taxes failed to perform as expected.