The monthly revenue report of
November 2013 state tax collections was released today.
Results
State
general fund revenues for November were $908.1 million, $76.8 million (7.8%)
below target based on the most recent forecast updated on April 16, 2013. For
the first five months of FY 2014, total general fund revenues were $5,409.8
million.
Sales tax collections were $23.1 million (4.1%) below target for the month and
$72.1 million below forecast for the year. The redirection of sales tax under
HEA 1001-2013 accounts for $28.8 million of the year-to-date difference.
Individual income tax collections totaled $304.4 million for November, $41.1
million (11.9%) below target for the month. For the first five months of FY
2014, individual income tax collections were $108.2 million below forecast at
$1,805 million.
Corporate income tax collections were $5.9 million below target for the month
and $19.9 million (7.5%) above forecast for the first five months.
Gaming revenues were $6.5
million below target for the month and $4.7 million below forecast for the
year.
Commentary
Through the first five months
of FY 2014, state general fund revenues were $141.3 million below target based
on the most recent revenue forecast updated on April 16, 2013. State general
fund revenues were $101.6 million (1.8%) lower than in the first five months of
FY 2013.
The state budget (HEA
1001-2013) was enacted after the April 2013 forecast. Only three tax changes in
the state budget affect FY 2014 revenue anticipated by the forecast. First, HEA
1001-2013 redirected 1% of sales tax collections to the motor vehicle highway
fund thereby reducing general fund collections by $28.8 million through
November 2013. Absent that change, sales tax collections would have increased
by 3% over the same period last year. The April 2013 forecast projected sales
tax collections would grow by 3.9% for the year. Second, HEA 1001-2013
eliminated the inheritance tax. Third, HEA 1001-2013 reduced the financial
institutions tax. Taking into account these tax changes, revenue collections
are still $106.9M below expectations for the first five months of FY 2014.
Individual income tax was
$108.2 million below target for the first five months and $87.8 million below
the same period in FY 2013. Transfers were made to the LOIT reserve fund in the
first five months totaling $98.9 million (there was no transfer in the first
five months of July through November 2012), resulting in a year-over-year
reduction in individual income tax revenue. A LOIT reserve transfer in the
amount of $91 million was made in accordance with the December 2012 revenue
forecast.
Through the
first five months of FY 2014, corporate income tax collections were $19.9
million (7.5%) above the forecast target, but 8.6% below the same period last
year.
http://www.in.gov/sba/files/revreport_november2013_commentary.pdf
