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State Revenues Below Forecast for January

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Indiana's monthly revenue report for state tax collections in January 2014 was released Friday. The amount was two-point-eight percent below what was forecast. Here's more info:
 
Results
• State general fund revenues for January were $1,333.2 million, which is $38.3 million (2.8%) below target based on the December 20, 2013 forecast. For the first seven months of FY 2014, total general fund revenues were $8,062.1 million.
• Sales tax collections were $645.6 million for January, which is $15.5 million (2.3%) below target for the month.
• Individual income tax collections totaled $591.3 million for the month, which is $13.2 million (2.2%) below target for the month. For the first seven months of the fiscal year, individual income tax collections have missed the estimated target by $52.5 million, or 1.8%.
• Corporate income tax collections were $2.4 million below target for January, but are $12.2 million (2.7%) above target year to date.
• Gaming revenues missed the monthly target by $3 million and are $8 million below estimates for the first seven months of FY 2014.
Commentary
Through the first seven months of FY 2014, state general fund revenues were $8,062.1 million, which is $35.5 million (0.4%) below target based on the most recent revenue forecast updated on December 20, 2013.
Compared to FY 2013, state general fund revenues are $65.9 (0.8%) below collections for the first seven months of the fiscal year, largely driven by declines in corporate, gaming, and inheritance tax revenue.
Sales tax revenues were $4.0 million more than collections from January 2013. Year over year, sales tax collections have grown by 2.0%, or $75.4 million. Not included in the $75.4 million sales tax growth for the general fund is more than $41.2 million in sales tax revenue that has been diverted to the Motor Vehicle Highway fund this fiscal year.
Individual income tax revenues for FY 2014 are $5.6 million less than collections in FY 2013. Estimated payments received for January 2014 were 15% lower than estimated payments received in January 2013. The number of taxpayers filing an Estimated Tax Payment Form (ES-40) in January was also nearly 8,400 lower in FY 2014 than in FY 2013. This year-over-year reduction in estimated payments in January 2014 is likely due to taxpayers "accelerating income" from 2013 to December 2012 to avoid 2013 federal tax increases.


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