The state of Iowa collected over half-a-billion dollars more in taxes during the last 12 months than during the previous fiscal year.
Fiscal Year 2019 for the State of Iowa ended Sunday. Preliminary figures indicate tax revenue growth was ahead of expectations by nearly $100 million. In total, the State of Iowa took in more than $9.3 billion in taxes and fees during the past 12 months.
Officials say it’s hard to estimate how much of the tax windfall is due to higher wages in Iowa and how much is due to a change in a state income tax deduction. Iowans get a deduction on their state income taxes for federal taxes paid. That deduction has declined because of the tax cuts enacted at the federal level.
The phased-in state income tax cuts Republican lawmakers approved in 2018 started to take effect in January of this year — halfway through the state’s just-concluded fiscal year.