tax revenue

Indiana 2018 Fiscal Year Off To Slow Start

Aug 10, 2017

Indiana’s 2018 fiscal year began not with a bang, but a whimper, as all of its tax revenues came in below expectations.

The last fiscal year – which ended in June – finished with total state tax collections just barely ahead of projections. Sales and corporate taxes slightly exceeded expectations but individual income taxes failed to hit their target.

Noah Coffey / https://www.flickr.com/photos/noahwesley/

State revenues are still falling short of projections, three months into the fiscal year.

Revenue numbers released Friday show Indiana earned nearly $26 million less in sales tax than it expected in September.

Those revenues have fallen short of expectations for 19 of the past 21 months.

State of Indiana / http://in.gov/

Indiana’s sales tax revenues have under-performed this fiscal year, and a new revenue forecast predicts the state won’t collect as much as previously predicted. 

That has Republican legislative leaders looking at the causes and effects.

Sales tax collections are down more than 3 percent from expected levels through nearly half of the fiscal year. 

Nic McPhee / https://www.flickr.com/photos/nicmcphee

A new revenue forecast unveiled Thursday by state fiscal analysts predicts Indiana will collect $175 million less in tax revenue over the next two years than previously expected.  

Jim Nix / https://www.flickr.com/photos/jimnix/6168273244

Indiana’s gaming revenue has been in free fall for a few years, and it’s predicted to continue its drop in the upcoming two-year budget cycle. 

That’s in large part because of increased competition from neighboring states. 

A legislative study committee is proposing changes to the industry that include moving riverboats on land, allowing live dealers rather than electronic table games at racinos, and tax incentives.