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Indiana Tax Collections Dramatically Exceed Expectations In May

 Indiana collected $518 million more than expected in May, with sales, individual income and corporate income taxes all besting projections.

Indiana collected $518 million more than expected in May, with sales, individual income and corporate income taxes all besting projections. (Brandon Smith/IPB News)

Indiana collected far more in taxes last month than even recent rosy projections anticipated, which leaves the state well-positioned heading into the final month of the current fiscal year.

Indiana got a new revenue forecast in April, which projected how much the state would collect in taxes each month for the next couple of years. That forecast was much more positive than previous predictions.

And Indiana still bested expectations last month by $518 million. Sales, individual income and corporate income tax collections all dramatically exceeded anticipated levels.

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That puts the state nearly $2 billion ahead of its budget plan with just one month to go before the books are closed on the fiscal year.

State budget analysts ascribe the increased revenue to a variety of factors, including increasingly relaxed coronavirus restrictions, the COVID-19 vaccine and federal COVID relief packages.

Lawmakers and the governor have already made plans for spending some of the budget overage, including hundreds of millions to pay down state debt and money for student learning loss.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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