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January Revenue Report Strong, Sales Tax Revenue Lags

By Brandon Smith

Posted February 6, 2013

In order to meet projections for this fiscal year, state tax collections need to increase 1.5 percent. Through the first seven months of the fiscal year, revenues have increased four percent, putting the state $176 million ahead of projections.

Indiana had a particularly strong January, $106 million above target, but that is due in large part to individual income tax collections, which were strong last month because of a delay at the IRS in accepting tax returns. Sales tax collections suffered, more than $27 million below projections for the month.

Still, state Office of Management and Budget director Chris Atkins says it is not cause for concern.

"We're still up year-over-year, you know, compared to where we were in 2012," he says. "We're actually healthily up about four percent compared to where we were in January so it's not a concern."

Atkins says as long as sales tax revenues continue to improve based on last year, the state will be fine and suggests the figures being below target says more about a need to review the state's projections.

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