That drop is not due to the COVID-19 pandemic, according to the Legislative Services Agency. It happened because the State of Iowa sent out $70 million more in state income tax refunds this March compared to March of last year.
The state fiscal year began July 1, 2019. Through March 31, 2020 there’s been a 4.2% increase in total state tax receipts. The first impact of the pandemic — the closure of many businesses and layoffs for thousands — will be shown in the end of April report on state tax collections.