NewsPublic Affairs / July 12, 2018

Indiana Corporate Taxes Continue To Fall As State Closes Books

Overall, the state’s tax collections essentially met the budget plan approved last year, 0.01 percent better than expected.tax revenue, corporate tax rate, Indiana Office of Management and Budget2018-07-12T00:00:00-04:00
Original story from   IPBS-RJC

Article origination IPBS-RJC
Indiana Corporate Taxes Continue To Fall As State Closes Books

Office of Management and Budget Director Micah Vincent says Hoosiers should be happy the state doesn't rely on corporate taxes as that revenue source continues to decline.

Brandon Smith/IPB News

Indiana closed the books on its 2018 fiscal year to mark the third consecutive year the state collected less in corporate taxes.

The state collected $318 million less from corporations this year than last year.

2018 is the third straight year corporate tax collections went down. It’s also the seventh consecutive year Indiana cut the corporate tax rate, the third largest source of state revenue. But Office of Management and Budget Director Micah Vincent says that’s no cause for concern – he says corporate taxes are volatile.

“I would say Hoosiers should be very glad that we are not remaining as reliant on that tax,” Vincent says.

State officials regularly tout Indiana’s business climate and the number of companies they entice to locate or expand within the state.

Indiana will continue long-scheduled cuts to the corporate tax rate for another three years.

Overall, the state’s tax collections essentially met the budget plan approved last year, 0.01 percent better than expected.

Indiana finished its fiscal year with nearly $1.8 billion in reserve, which Vincent says helps ensure the state will have financial flexibility in any future economic downturn.

 

 

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