Indiana state tax collections took another hit in May.
The Indiana State Budget Agency reported June 5 that general fund revenues for May totaled $952.4 million, which is $233.3 million or 19.7% below December estimates and $187.4 million or 16.4% below revenue in May 2019.
Reduced business activity combined with stay-at-home orders and delays in tax filings because of the coronavirus pandemic are the main drivers behind reduced tax collections, which officials expected. The state also reported a sharp drop in revenues for April, which led officials to make spending cuts for most state operations in 2021.
With the state and rest of the world returning to work, Indiana officials say uncertainty still surrounds tax collections for the near term.
“Going into June, significant fluctuations are expected and deviations from monthly estimates are likely as the rapidly changing economic outlook will most likely impact monthly collections,” the state said. “Additional uncertainty will persist over the coming months, particularly with individual income tax and corporate taxes, with the alignment of Indiana’s tax filing and payment due dates with the federal deferral to July 15.”
Year-to-date general fund collections totaled $13,587 million, which is $1,163.7 million or 7.9% below the December 2019 revised revenue forecast and $774.8 million or 5.4% below collections through the same period in the prior fiscal year.
Other report highlights:
- Sales tax collections totaled $583.4 million for May, which is $102.2 million or 14.9% below the monthly estimate and $88.3 million or 13.1% below revenue in May 2019.
- Individual income tax collections totaled $336.1 million for May, which is $62.8 million or 15.7% below the monthly estimate and $36.8 million or 9.9% below revenue in May 2019.
- Corporate tax collections totaled $7.9 million for May, which is $10.4 million or 56.7% below the monthly estimate and $10.8 million or 57.7% below revenue in May 2019. Corporate adjusted gross income tax collections came in $8.2 million below the monthly estimate.
- No riverboat wagering or racino wagering taxes were collected in May. The state projected in December it would have collect $36.3 million in riverboat wagering taxes and about $13.1 million in racino wagering taxes.
