There’s been a nearly six percent increase in state tax receipts in the past five months compared to the same period a year ago.
“Gains in sales and use tax as well as corporate income tax remain significant,” says Jeff Robinson of the Legislative Services Agency, “while individual income tax growth for the year has been flat.”
Corporate income tax payments to the state rose more than 19% from July 1 through the end of November. State sales tax collections were up 2.5% during the period.
“Federal economic stimulus and direct payments continue to support consumer spending,” Robinson says, “while Iowa and national employment levels remain well below pre-pandemic levels.”
The Legislative Services Agency estimates $9.3 billion in additional federal funding flowed into Iowa through enhanced unemployment benefits, loans and other pandemic-related spending approved during the Trump and Biden Administrations. A three-member panel of financial experts will meet on December 13 to review state tax receipts and give Iowa lawmakers a new estimate of total state tax revenue.