The latest report on state finances shows state tax collections are “slightly” running ahead of last year, by less than one percent.
“Net receipts for the month of October totalled $434.8 million, a modest $3.1 million and 0.7 percent increase compared to last October,” says Jeff Robinson, senior fiscal analyst for the Legislative Services Agency.
Over the past four months, total tax payments to the state are up nearly, but not quite, one percent.
“This year’s positive drivers for revenue growth have been individual income tax withholding payments, up 5.2 percent, and sales tax, up 3.2 percent,” Robinson says. “Both indicate that the underlying Iowa economy continues to expand.”
However, income tax refunds have been higher than officials had expected, plus adjustments to corporate income taxes and franchise taxes have been “a drag” on overall tax collections, according to Robinson. The state’s fiscal year began July 1. State officials have projected net state tax revenue to increase by 5.6 percent over the previous year.