State tax revenue misses expectations again

Indiana tax receipts fell just below predictions in February, raising concern among key lawmakers who are writing the next two-year budget.

For the first eight months of fiscal year 2015, revenue is down 1 percent, or about $91 million. Collections have missed expectations in six out of those eight months.

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said the news is making him cautious.

“When you’ve been through the process of having to cut, it makes you very careful about deciding how to spend when you have the opportunity to spend new money,” Kenley said.

Lawmakers are currently working on the next two-year state budget and will get an updated fiscal forecast in April just before finalizing the plan. But if February is any indication, the news might not be good.

Sales tax collections were $535.6 million for February, which is 3.5 percent below the monthly estimate and 4.6 percent above revenue in February 2014.

Individual income tax collections totaled $124.1 million for the month, which is 5.1 percent below the estimate.

Corporate and casino gambling taxes beat projections.

For the year, sales tax collections are 0.6 percent above the estimate released in December and 5.9 percent above collections through the same period for FY 2014.

Individual income tax collections through the first eight months of FY 2015 have grown by 4.3 percent over the same period last year but were 4.1 percent below estimates.

Corporate tax collections through the first eight months of the fiscal year were 3.2 percent below collections the same period a year ago and 1.8 percent above the revised estimate year to date.