States Of Indiana Monthly Revenue Report

Thursday, November 10:

The monthly revenue report for October, along with commentary from State Budget Director Brian Bailey, has been posted on the State Budget Agency webpage. The report and commentary can be found here: http://in.gov/sba/2696.htm. Charts visualizing revenue data are located on the Management and Performance Hub under the State Tax Revenue section: http://www.in.gov/mph/staterevenue.html.

Results

General Fund revenues for October totaled $1,163.8 million, which is $17.9 million (1.5%) below estimate based on the December 17, 2015 Forecast and $56.7 million (5.1%) above revenue in October 2015.

• Sales tax collections totaled $622.1 million for October, which is $9.6 million (1.5%) below the monthly estimate but $28.7 million (4.8%) above revenue in October 2015.
• Individual income tax collections totaled $463.6 million for October, which is $7.9 million (1.7%) above the monthly estimate and $25.5 million (5.8%) above revenue in October 2015.
• Corporate tax collections totaled $17.1 million for October, which is $8.9 million (34.2%) below the monthly estimate and $10.1 million (144.6%) above revenue in October 2015.
• Riverboat wagering collections totaled $20.3 million for October, which is $2.0 million (9.0%) below the monthly estimate and $3.0 million (12.8%) below revenue in October 2015.
• Racino wagering collections totaled $7.6 million for October, which is $0.1 million (1.5%) below the monthly estimate and $0.5 million (5.9%) below revenue in October 2015.

 Commentary 

Year-to-date General Fund collections total $4,762.7 million, which is $75.7 million (1.6%) below the December 2015 revenue forecast but $192.2 million (4.2%) above the prior fiscal year.

Year-to-date sales tax collections total $2,500.3 million, which is $74.2 million (2.9%) below the December 2015 forecast but $75.5 million (3.1%) above collections through the same period from the prior fiscal year.

Individual income tax collections total $1,766.4 million year-to-date, which is $34.5 million (2.0%) above forecasted collections and $132.6 million (8.1%) above year-to-date collections from the same time last fiscal year.  Compounding the year-over-year growth of individual income tax in fiscal 2017 is the “five Friday effect.”  There was one more Friday of payroll processing in September, which was recorded in October’s payroll tax withholding.  In October 2015 there was no “five Friday effect,” so October 2016 individual income tax revenue is higher than October 2015 revenue due to this factor.

Corporate tax collections continue to underperform compared to forecast and compared to prior year collections.  Corporate collections are $38.7 million (15.7%) below forecast year-to-date and $8 million (3.7%) below fiscal year-to-date collections through the same period.