Updated Nov. 10, 10:20 a.m.
INDIANAPOLIS -- Indiana last month faced the first significant revenue shortfall this fiscal year, collecting $64 million less than expected.
A processing error shifted more than $86 million in tax revenue collected in September to October’s balance sheets. After accounting for that shift, the state fell short of its target revenue by nearly 6 percent last month.
Through a third of the current fiscal year, that puts Indiana about $61 million below the target of $4.57 billion, or 1.3%.
The biggest losses in October came in sales tax and corporate income tax collections, which were off by about $27 million and $35 million, respectively. Corporate taxes in particular fell short, 107 percent below projections. The State Budget Agency says higher corporate refunds contributed to that shortfall. Indiana will release a new revenue forecast next month.
Correction: An earlier version of this story said Indiana was 6% below its revenue target for the fiscal year. It should have said revenue is down 1.3% for the fiscal year.