July State Revenues Below Projections
August 7, 2013 — TheStatehouseFile.com
INDIANAPOLIS – Total tax revenues for July – the first month of the 2014 fiscal year – came in slightly below projections used to write the current state budget.
The revenue for the month totaled $1.04 billion. It would have been higher but the state budget, which took effect July 1, directed that some sales tax revenue be transferred to a fund for road construction.
Even if that revenue – about $5.9 million – had been added back into the general fund, however, revenues still missed the monthly target by less than 1 percent.
Overall, sales tax collections – including the portion used for road construction – increased by 3.4 percent compared to July 2012.
The forecast released in April projected that sales tax collections would grow by 3.9 percent for the full 2014 fiscal year.
Individual income tax collections totaled $319 million for the month, which is a 17.8 percent drop from collections for the same month last year. A large decline was expected though since the timing of withholding payments is influenced by the number of Fridays in a month.
June 2012 had five of those Friday paydays, which meant more money was sent to the state the following month. This year, June had the normal four.
The individual income tax collections were 3.6 percent below the target for July 2013.
Corporate income tax collections were higher than forecasted but still lower than a year ago.