One of the state’s top financial analysts says Iowa tax revenue is higher than expected, a signal the economy’s “perking up a little bit.” Legislative Services Bureau director Dennis Prouty is a member of the three-member council that predicts state tax revenue, and he’s been reviewing state tax receipts.Prouty says tax receipts from July through the end of May are running four-point-two percent ahead of what the state collected during the same period a year ago. Prouty and others on the State Revenue Estimating Council had predicted under two percent growth in tax revenue. Prouty says the roughly 100-million more dollars the state will take in will be placed in savings.Prouty says the biggest increase in state tax collections comes from individual Iowans, as personal income taxes being paid the state are increasing, for any number of reasons. Prouty says more people are working, unemployment’s down, more folks are working overtime and “the economy seems to be perking up a little bit.” But Prouty cautions the tax data came before the “severe increase” in gas prices which may prompt Iowans to spend less on clothing and other goods, reducing state sales tax collections.
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