State Revenue Outpaces Projections Again
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Indiana continues to beat the most recent revenue projections. The Indiana State Budget Agency says General Fund revenues for February totaled more than $1.1 billion, which was nearly 13.6% higher than the December 2021 forecast and and 11% higher than the same month last year.
The agency says the increased revenue was driven largely by better-than-expected collections from individual income taxes and corporate taxes. Those collections outweighed lower-than-expected collections from sales taxes, gaming taxes and others.
Year-to-date, General Fund revenues are more than $200 million above the December 2021 forecast and 3.8% higher than the amount collected through the same period the previous fiscal year.
Earlier this week, Governor Eric Holcomb gave his support for big cuts in business and individual income taxes, citing recent strong tax collections. The governor is proposing a drop in the current individual income tax rate from 3.23% to 2.9% over seven years.
Holcomb’s office says when fully implemented, his proposal would reduce state revenue by about $900 million per year.
You can connect to the February revenue report by clicking here.