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Indiana tax collections stall again ahead of new revenue forecast

After 29 consecutive months of state revenues that outperformed budget expectations, Indiana collections have now fallen short two months in a row.

Two months of subpar revenue collections have left Indiana $116 million short of where the state budget expected it to be, though that’s less than 2 percent off the mark and there are seven months to go in the fiscal year.

Sen. Travis Holdman (R-Markle) said revenue collections should prompt some caution.

“I think we just need to be cautious and holding back on state agency spending until we get to that first quarter of 2024,” Holdman said. “I think that’ll be the telltale sign of where the economy is going to land.”

READ MORE: Where does Indiana state budget funding come from?

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Sales taxes are, perhaps, the big worry. Sales tax collections have been below expectations for eight consecutive months.

State fiscal analysts explain away some of that by noting that the state this year began shifting gasoline sales tax dollars out of the General Fund, contributing to the lower-than-expected figures on the revenue sheet.

Brandon is our Statehouse bureau chief. Contact him at or follow him on Twitter at @brandonjsmith5.
Copyright 2023 IPB News.

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.