Indiana Tax Revenue Continues To Rise Above Expectations | Government and Politics
Hoosiers have money in their pockets and they are apparently eager to spend it.
Data released by the State Budget Agency shows Indiana raised $ 65.2 million, or 5.1%, more in tax revenue in July than officials predicted in April. when they developed the two-year government revenue forecast.
Records show the majority of the additional revenue came from the 7% sales tax Hoosiers paid when they purchased products last month from Indiana-based stores and online retailers.
In contrast, the $ 419.2 million in personal income tax collection was only $ 300,000, or 0.1%, more than expected, according to the July income report of the state.
The extra expenses in the absence of unexpected income were likely due to the prepayment of the increased federal child tax credit of $ 250 or $ 300 per month per child, depending on age, landing in Hoosier families’ bank accounts eligible with children around July 15.
It may also be because Hoosiers continues to spend his $ 1,400 federal stimulus checks that helped boost state revenues by an unprecedented $ 1.2 billion above forecast. in April, May and June.
In fact, Indiana has collected so much excess income in the last three months of its 2021 fiscal year that people filing state income taxes next year will get an estimated $ 170 credit for their tax. payable, triggering an income tax refund for most filers.