Total Indiana tax revenues have lagged in each of the four months of the fiscal year that began in July. And October didn’t help, with collections missing the mark by nearly $30 million.
That’s despite sales and individual income taxes which exceeded expectations for the first time this fiscal year – though just barely. And despite that positive month, collections for those two tax categories remain less than expected overall.
Corporate tax collections dragged down October numbers the most. For the second time this fiscal year, the state paid out more in corporate tax refunds than it collected.
Through fourth months of the current year, corporate tax underperformance represents $126 million of the state’s $136 million shortfall.