November 23, 2014

State tax revenue up 10.3 percent in last four months

State tax collections grew “significantly” in the last four months. Jeff Robinson of the Legislative Services Agency spoke about the numbers in a video briefing just posted online.

“Over the months of July through October, Iowa net General Fund revenue increased $185.1 million, up a significant 10.3 percent compared to the same four months last year,” Robinson said. “The month of October alone produced $62.3 million in net General Fund revenue growth.”

The current state fiscal year began July 1.

“So far, the fiscal year has produced good individual income tax and sales and use tax growth, and continued very strong growth in corporate income tax receipts,” Robinson said.

State tax revenue has increased in 11 of the past 13 months. According to Robinson, there’s been an average monthly increase in state tax collections of $45 million during that 13 month period.

“Individual income tax revenue is the largest source of General Fund revenue and over the past six months gross individual income tax revenue increased 4.8 percent,” Robinson said in the video. “Sales and use tax revenue has shown a similar pattern…with 11 growth months in the past year and 6.4 percent revenue growth over six months.”

Corporate income tax payments to the state have increased nearly 25 percent from July through October.

A three-member panel of state experts met in early October and predicted state tax revenue would grow by three percent during the current year. Actual growth through the first four months of the state’s fiscal year is more than seven percent higher. According to Robinson, there’s uncertainty looming about what state tax collections may be, as congress hasn’t yet decided what federal income tax rates Americans and Iowans will pay in 2013 and that decision — which could come when congress reconvenes after the election —  will impact state income tax collections.