Give Now

Delays, Closings and Severe Weather - View All Alerts and Updates

State Sales Taxes Miss The Mark During Past Two Fiscal Years

ff

Indiana’s sales tax collections have failed to meet expected levels for 21 of the last 23 months and it’s prompting state fiscal analysts to change the way they project those revenues.

In the last two fiscal years, Indiana’s sales taxes missed the mark by roughly a combined 154 million dollars. Office of Management and Budget Director Micah Vincent says while there are a few reasons for that, there’s one central cause.

“This past fiscal year, we missed forecast by I think it was about $123 million,” Vincent says. “You could attribute that almost entirely to the amount of the miss on sales tax on gasoline.”

State fiscal analysts are now changing the way they calculate sales tax projections to better account for swings in gas prices that greatly affect those collections.

However, House Ways and Means Vice Chair Bob Cherry notes there is another cause, as he urges people to get their Christmas shopping done.

“And don’t do it online, because I think people buying online…we’re still being short of sales tax,” Cherry says.

Sales taxes through almost half of the current fiscal year are nearly $89 million off the mark.

Want to contact your legislators about an issue that matters to you? Find out how to contact your senators and member of Congress here.

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From