In what may be a sign of a growing economy, state tax collections are growing.
The state fiscal year started July 1. The latest data through January 31 shows net state tax receipts are up 5.3 percent compared to the same seven-month period a year ago. Iowans appear to be earning more. Overall personal income tax payments to the state are up four percent. For those Iowans on a company payroll, taxes withheld from paychecks grew by more than 2.5 percent. However, there was a 10 percent increase in estimated state income tax payments that come from self-employed Iowans.
Iowans may be making more purchases, too, as state sales taxes grew 4.6 percent in the last seven months. January was a particularly strong month. State sales tax collections grew nearly 19 percent in January, although some of that may be taxes from sales in December, as there was a timing issue at the turn of the year for submitting sales tax receipts to the state.