Despite the negative news about the U.S. economy, a new report shows “strong growth” in state tax collections.
Tax revenue for the State of Iowa increased more than six percent during the 12-month state fiscal year that ended on June 30. Jeff Robinson of the Legislative Services Agency says in the month of June alone, net receipts for all state taxes increased more than 11 percent.
“Iowa’s tax returns have been accelerating for the last year, particularly the last three or four months,” Robinson says, “and under the concept that a better economy produces better tax revenues, that means ours is getting better.”
Over the past 12 months, the State of Iowa collected more than $6.9 billion in taxes. Personal income tax payments to the state rose 5.3 percent and corporate income taxes were up more than 50 percent during that period.
“The cash part of the year ended up well above projects,” Robinson says. “And so far, in July, there have been really good receipts.”
Over the last 12 months only one category of state taxes dipped. The state collected $11 million less in fuel taxes. New vehicles are getting better gas milage, which means Iowans are buying less gas for their daily commute. In addition, higher-than-normal gas prices over the past year caused people to drive less, meaning they bought less gas and, therefore, paid less in gasoline taxes.