The state of Iowa collected $782 million in taxes last month, a near-record level, but state officials offer some cautionary notes.
According to an analysis from the Legislative Services Agency, tax collections in May were slightly inflated when compared to the same month a year ago, based on the timing of deposits and when weekends fell. In addition, state income taxes were due April 30th and returns with payments were deposited later this year, providing a significant boost in May.
According to the Legislative Services Agency, “all news was not positive for the month.” There was a decline in the amount of individual income taxes withheld from May paychecks, indicating some Iowans may have been laid off while others saw their work hours reduced.
Despite those negative notes, overall net state tax collections are running one-point-three percent ahead of what officials had expected. There is only one other May on record that eclipses May of 2011 in terms of state tax collections. Nearly $792 million in state taxes were paid in May of 2007, which is about $10 million more than was collected last month.