State tax receipts grew by 7.7 percent in April and the total amount of taxes collected in the past 10 months hasn’t fallen as dramatically as feared.
Personal income tax payments to the state were down slightly compared to April of last year, but withholding payments increased. That’s an indication Iowans are working longer hours or they’ve gone back to work. Sales tax payments to the state in April were up over two percent compared to April of 2009. Corporate income tax payments were up, too, for the second consecutive month.
Overall state tax collections for the past 10 months are down from the same period a year ago, but they aren’t down as much as a three-member panel of experts had predicted. The state fiscal year ends June 30th. If the trends in April continue, there may be more money to shift over to the state’s cash reserve later this summer.
The data comes from a report released yesterday by the Legislative Services Agency.