The pandemic-fed economic slowdown is taking a toll on Indiana state government tax collections.
The State Budget Agency reported general fund revenues for October totaled $1,196.3 million, $7.3 million or 0.6% below December 2019 estimates, but up $8.2 million or 0.7% above revenue in October 2019.
The state is expecting tax collections to fluctuate for the remainder of its fiscal year.
“Deviations from monthly estimates are likely as the rapidly changing economic outlook and federal policy actions will most likely impact monthly collections,” the state said.
The state said better than expected collections in October from corporate adjusted gross income tax and sales tax were outweighed by lower than expected collections in individual income tax, gaming, interest, and miscellaneous revenues.
The state said 16 months into its fiscal 2020-2021 biennium, between July 2019 and October 2020, general fund revenues are $515.2 million below estimates for that period based on forecasts from December 2019.
Sales tax collections totaled $721.9 million for October, which is $24.3 million or 3.5% above the monthly estimate and $46.9 million or 7% above revenue in October 2019.
The state said between July and October, tax collections may have been influenced by unusual factors including the phased reopening of the economy in June as well as recent federal policy actions on assistance programs, economic impact payments, interest rates and more.
The state said year-to-date sales tax collections totaled $2,937.9 million, which is $104.2 million or 3.7% above the December 2019 revenue forecast and $183.3 million or 6.7% above collections through the same period in the prior fiscal year.
Year-to-date individual income tax collections totaled $2,559.8 million, which is $634.4 million or 32.9% above the December 2019 revenue forecast and $708.6 million or 38.3% above collections through the same period in the prior fiscal year.
