Indiana started its new fiscal year on a positive note, with tax revenues that slightly outperformed expectations.
That’s despite the continuation in July of a negative trend.
Indiana collected about $5 million more in taxes than state budget makers planned for. That’s largely due to individual income tax revenue, which bested projections by more than $30 million.
Sales taxes underwhelmed a bit, just 0.5 percent off the mark.
But July – the first period of the new fiscal year – continued a troubling trend that stretches back months. Corporate taxes failed to meet the mark last month – the state actually paid out in refunds more than it took in. Only once in the last year have corporate tax collections performed at or above expectations.
State officials shrug off those numbers – they say federal tax changes and unpredictability explain the slumping revenue.
Indiana cut its corporate tax rate each of the last seven years. And those cuts will continue through 2021.