In the last 12 months, state tax revenue was $1.4 billion above collections in the previous fiscal year.
The state fiscal year ended June 30. According to the Legislative Services Agency, there was an 18.6% increase in state tax revenue during that 12-month period compared to the previous fiscal year. As you’ll recall, the final four months of that year were March, April, May and June of 2020 when the bottom dropped out of the economy due to the pandemic.
The state ended the fiscal year on June 30 with a surplus of about half a billion dollars. Last month, as she signed a series of tax cuts into law, Republican Governor Kim Reynolds announced she’ll be proposing more cuts to personal income taxes next year.
In this just-concluded fiscal year, Iowans paid nearly 17% more in personal income taxes to the state, corporate taxes grew nearly 52% and sales and use tax payments grew by 10.6% compared to Fiscal Year 2020.