The state collected just over 350-million dollars in taxes in the month of July. The amount of sales and income taxes paid to the state in July nearly mirrored what was paid in July of last year.
Dennis Prouty, director of the Legislative Services Agency, says the state collected three-tenths of a percent less in sales taxes this July compared to last. And income tax collections in July were up just a tick — six-tenths of a percent.
“It’s so early in the cycle that that’s not much of a clue.” The state fiscal year began July 1st, and Prouty’s not worried lackluster state tax collections in the past month are a harbinger of a recession. “It takes about three months for the fiscal year to even out and become something so that we can use that as an indicator,” Prouty says.
“The first three months of any fiscal year are either violently up or violently down so I’m not too concerned from that standpoint.” Overall state tax receipts in July were 10 million dollars greater than last July.
Prouty says that amounts to a roughly six percent increase.”You know 5.8 percent is really a good place to be,” Prouty says. “It’s better than having a negative figure.” State tax collects are largest in the spring when most Iowans file their income tax returns and some find they owe the state money