Indiana Tax Collections Lag Well Below Projections

Indiana tax collections are lagging, more than $65 million below projections in the first two months of the fiscal year.

Dollar bills.

Photo: 401(k) 2012 (Flickr)

Indiana tax collections are down but the state budget director says it’s not yet time for serious concern:

Indiana took in $51 million less tax revenue last month than expected, including individual income tax collections that were more than 12 percent below projected levels.

That leaves the state more than three percent below where it was this time last year.

The State Budget Agency says the new state budget redirects some taxes to the Motor Vehicle Highway Fund, which accounts for some of the drop in revenue.

Budget Director Brian Bailey says only two months of collections makes it difficult to identify a potential cause.

“I think we’ll have a better idea once this next month’s revenue comes in. At that point we’ll have a quarter and we may see a trend emerging or we may see that there’s not a trend yet and we’ll just keep an eye on it,” he says.

A lone bright spot, corporate tax collections are more than 46 percent above projections and more than 4 percent better than last fiscal year.

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