sales tax

Indiana Corporate Tax Collections Continue To Struggle

May 10, 2018
The state has now brought in more than $100 million less in corporate taxes than even updated, pessimistic projections predicted. (Brandon Smith/IPB News)
Brandon Smith

Indiana tax collections are still behind the state’s budget plan – by a small amount – as the final quarter of the fiscal year began.

Total revenues are about $26 million less than planned through 10 months of the current cycle. That’s a small miss – only about two-tenths of a percent off the mark. It was helped by a strong April, which brought in about $42 million more than expected.

Sales Tax On Food In Vending Machines Eliminated

Mar 29, 2018
(Lauren Chapman/IPB News)
Lauren Chapman

Lawmakers this session eliminated what they saw as a quirk of state law – sales tax on food sold in vending machines.

Most food bought at the grocery store is exempt from the state sales tax, says Rep. Dave Ober (R-Albion).

“But some of those same items, if they’re purchased through a vending machine, are charged the seven percent tax,” Ober says.

New Law Exempts Certain Software From State Sales Tax

Mar 23, 2018
Gov. Eric Holcomb says a bill he signed to exempt sales tax for software delivered as a service sends a message that Indiana wants to be a leader in the tech sector. (Brandon Smith/IPB News)
Brandon Smith

Gov. Eric Holcomb says a bill he signed Friday to exempt sales tax for software delivered as a service sends a message that Indiana wants to be a leader in the tech sector.

State Tax Revenues Continue Slump In November

Dec 11, 2017

 

Indiana tax revenues continued their slump last month as the state nears the halfway point of its current fiscal year.

Indiana took in $13 million less in taxes than expected in November, which puts the state nearly $150 million below target through five months of the fiscal year.

The state has yet to exceed expectations for a single month in that period.

Indiana tax revenues fell further behind expectations as the state finished the first quarter of its fiscal year.

The first two months of the fiscal year put the state more than $40 million below expectations. September made it more than twice as bad.

Total tax collections last month were more than $66 million less than projected, which puts the state $107 million off the mark for the fiscal year.

Sales, corporate, and individual income taxes all missed their targets in September. Corporate and sales taxes haven’t yet met expectations at any point this fiscal year.

Indiana took in $134 million more in taxes last month than fiscal analysts predicted – that’s 20 percent better than projections, the best performance in nearly two years.

 

A Senate committee approved a bill that would require online retailers to collect sales tax for Indiana even if they have no physical connection to the state.

Online retailers are only required to collect sales tax for a state if they have a physical connection to that state. Otherwise, customers must pay the sales tax on their own –which rarely happens in part because many people don’t know that.

Pictures of Money / https://www.flickr.com/photos/pictures-of-money/

Indiana’s fiscal year is off to a slow start, with its first two months coming in below expectations.

August tax collections came in more than $25 million less than expected – following a July return of more than $7 million below projections.

That leaves the state already 1.5-percent off the mark through the first two months of the new fiscal year.

Corporate taxes fared well in August, more than 40-percent better than expected.

But individual income taxes scuffled after a strong July and sales taxes performed poorly again, more than $20 million off the mark.

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.

Nic McPhee / https://www.flickr.com/photos/nicmcphee

Indiana's sales tax revenues have under-performed this fiscal year and a new revenue forecast predicts the state won't collects as much as previously expected. 

Sales tax collections are down more than 3 percent from expected levels through nearly half of the fiscal year. And a new revenue forecast predicts the state will collects more than $300 million less in sales tax over the next two years than previously expected. House Ways and Means Chair Tim Brown says what concerns him about that depressed outlook is Indiana's aging population.

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