State tax collections are up — another signal the Iowa economy is on the rebound. A panel of experts that evaluates state tax receipts today (Tuesday) predicted state tax collections will grow by 86 million dollars more than they had expected. David Underwood is one of three members of the committee that makes an estimate of future state tax revenue. “I think just about universally everybody now has felt they’ve turned the corner with this business and they’re having a better year this year,” he says. “Across the spectrum, there’s certainly a much better feeling this year.” Underwood says most of the state tax growth can be attributed to an increase in the personal income taxes that’re being paid the state. Underwood says the average weekly wage in Iowa is up three percent. And he says most industries will grant a two-and-a-half to three-percent pay increase in the coming year, so that will translate into even more income taxes for the state. Underwood says the housing boom in Iowa has been a bonus in terms of state sales taxes. Underwood says folks are paying sales taxes on the materials used to construct their homes, as well as sales taxes on the furnishings for those new homes. He says if interest rates creep up, that will dampen that part of the economy. Underwood is the chief financial officer for Assa Abloy Door Company in Mason City.
