State tax revenues are more than $70 million below expectations through the first quarter of the fiscal year.
Indiana tax revenues are more than 2% below projections for the first three months of the 2014 fiscal year and nearly 1% lower than the same period last year. Sales tax revenues are $32 million below expectations, while individual income tax revenues fell $26 million short of the mark.
State Budget Director Brian Bailey says the shortfalls are tempered by changes in the new state budget that transferred some tax dollars into other sources. That includes shifting some sales taxes into the motor vehicle highway fund and income taxes into a reserve fund.
Still, he says the numbers from the first quarter are something to be concerned about.
“This month was the least below target of those three months so while that is a bit of an improvement, it’s still something we’re closely monitoring.”
Bailey says only corporate income taxes have exceeded expectations so far, nearly $11 million above target.