Results
State general revenues totaled $1,191 million, $22 million (+1.9%) above target and $24 million (+2.1%) above collections for the same period last year.
Sales tax collections totaled $549 million for the month, $20 million (+3.7%) above collections for the same period last year.
Individual income tax collections totaled $323 million for the month, $10 million (-3.2%) below collections for the same period last year, primarily due to a large transfer to the local option income tax reserve. Payroll withholdings increased 16.5% compared to the same period last year, in part due to an extra payroll withholding.
Corporate income tax collections totaled $185 million for the month, $30 million (+19.7%) above target and $32 million (+20.9%) above collections for the same period last year.
Sales, individual income and corporate income taxes, the three biggest sources of Indiana’s revenue, have accounted for more than 90.5% of the state’s general fund revenue through the first half of FY 2013. When combined, all other general fund revenue sources – such as cigarette, insurance, inheritance, gaming, and excise taxes – account for less than 10% of the state’s general fund revenue.
Commentary
Through the first six months of FY 2013, state general fund revenues have increased 3.1%, more than double the rate needed to meet the most recent forecast (1.5%). Total general fund revenues are now $70 million ahead of the December 17, 2012 forecast.
Sales tax collections increased 3.7% over the same period last year. Fiscal year-to-date sales tax revenues have grown 2.5% and are just below target (-0.7%).
Through December, individual income tax collections have increased 4.7% compared to the same six month period last year, even after $91 million was transferred into the local option tax reserve this month. This reserve should smooth out fluctuations in the state’s individual income tax revenue collections and provide a first layer of protection when the economy next turns down. Individual income tax collections are running $42 million (+1.9%) ahead of target through the first half of FY 2013. Payroll withholdings have increased 6.2% over the same period, although some of this is due to a timing issue caused by an extra payroll withholding this year.
Through December, corporate income tax collections have increased 13.2% compared to the same period last year and are running $58 million (+13.3%) ahead of target. The December 17, 2012 forecast projects a decrease of 2.6% in corporate income tax collections for FY 2013 whereas actual collections have increased 13.2% for the first half of FY 2013.
http://www.in.gov/sba/files/revreport_december2012_commentary.pdf
The Budget data can be found here:
http://www.in.gov/sba/files/revreport_december2012.pdf
