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Indiana’s May General Fund Revenues Exceed Expectations by Nearly 9%: Income Tax Strong

(photo: Indiana Capital Chronicle)

Indiana’s general fund revenues for May exceeded expectations by nearly 9%.

Indiana’s May General Fund Revenues Exceed Expectations by Nearly 9%

Indiana’s general fund revenues for May were nearly 9% higher than expected, thanks to strong income tax receipts. This was reported by Governor Eric Holcomb’s office on Friday.

The state collected $1.59 billion in May, which was $126.6 million more than the forecast and $46.7 million higher than May 2023’s total.

Higher collections from individual and corporate income taxes as well as interest, compensated for lower sales tax collections according to Chief Economist Hari Razafindramanana.

Sales tax, which makes up about half of Indiana’s general fund revenues, brought in $850.5 million in May. This was $13 million less than expected but $7.7 million more than May 2023’s collections, even after removing the gasoline sales tax from the general fund.

Sales tax receipts reflect the previous month’s spending, indicating overall positive trends despite the slight shortfall.

Indiana collected $549 million in individual income taxes in May, 13.5% above the forecast and 11.8% more than May 2023.

With one month left in the fiscal year, Indiana is on pace to beat forecasts and last year’s totals. The general fund is $19.09 billion, nearly $150 million above projections and $393.9 million higher than last year, according to the report of The Center Square.

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(photo: WISH-TV)

Sales and Income Tax Surpass Forecasts Despite Corporate Tax Decline

The state’s sales tax for the last 11 months totaled $9.47 billion, $88.7 million below estimates but showing a 1.3% year-over-year growth when excluding gas tax contributions.

Individual income taxes have brought in $7.35 billion this year, 2.1% above the forecast and 5.8% more than the same period last year.

Despite recent rate cuts, individual income taxes increased by nearly 6%, with rates set at 3.15% for 2023 and 3.05% for 2024.

Increased individual tax revenue has offset drops in corporate income tax collections. The year-to-date total for corporate taxes is $764.1 million, $62 million below the forecast and $160 million less than last year.

State officials said the drop in corporate tax payments is due to the elimination of utility taxes and the timing of payments and refunds.

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