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Indiana Begins Fiscal Year Below Projected Tax Revenue

Tax revenues for Indiana were $5 million below expectations in July, the first month of the fiscal year.

Indiana Statehouse

Photo: Emily Penguin (Flickr)

The drop in real tax collection versus projected revenues is being attributed to a drop in corporate taxes.

Indiana is beginning the new fiscal year with tax revenues below projected levels, weighed down by poor performance from corporate tax collections.

The state struggled through much of the 2014 fiscal year that ended in June, coming in below expectations most of the year before finishing strong.

But Indiana’s momentum stalled to begin the 2015 fiscal year, with tax collections in July a little more than $5 million less than expected.

Individual income and sales tax revenues performed better than projected, but corporate income suffered, nearly 50 percent off the mark.

That marks a change from last fiscal year, when corporate tax revenues finished the year more than a $100 million ahead of expectations.

State Budget Director Brian Bailey notes that the overall tax collections last month did improve compared to July of last year.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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  • Bob Eckert

    When you keep the tax rate for corporations very very low to get them to come to the state, you have to live with lower revenue. Nothing comes without a price and that price in this particular case usually ends of hurting the citizens because of lowered revenue to fund programs that help citizens with their lives. It isn’t rocket science.

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