Indiana tax revenues on target overall as new fiscal year began; corporate taxes still lag

Indiana began its new fiscal year largely matching expectations, as the state brought in about $17 million more in revenue in July than the budget plan projected.

The Braun administration has said they'll be watching monthly revenue reports closely to monitor whether pessimistic predictions for the new budget cycle prove to be true.

July continued a positive trend in sales tax revenue. Last fiscal year, sales tax collections had come in under projections in all but one month heading into May. But for the last three months, the state has generated more sales tax revenue than expected.

READ MORE: As Indiana closes previous fiscal year, how did the state budget get so dire?
 

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The opposite is true for individual income taxes, which broke an eight-month positive streak of overperformance. Still, Indiana collected just $2.8 million less in individual income taxes in July than expected — less than 1 percent off the mark.

The state's third largest revenue source, corporate taxes, remained consistent in July — but that's not a good thing. Corporate taxes were 25 percent off the mark last month. And there have only been two months over the last year where those taxes came in above expectations.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.