Indiana is beginning its fiscal year with tax collections that failed to meet expectations by a narrow margin.
Indiana revenues came in just six million dollars off the mark in July, less than one percent off target. Individual income tax revenues performed better than expected, while sales tax collections came in slightly below target. But corporate income taxes badly missed the mark – 60 percent off expectations.
That's not good news for business owners hoping the state will help them avoid a major tax penalty next year.
The first few months of this fiscal year will be key as the Pence administration measures its ability to pay off the state’s unemployment insurance trust fund loan from the federal government. Gov. Mike Pence has said if state revenues perform well leading up to November, the state can pay off the loan and eliminate tax penalties that could save Hoosier business owners more than three hundred million dollars.