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State tax collections miss budget expectations

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Tax receipts for the first quarter of the state's fiscal year have missed projections that were used to write the current two-year budget and were less than the amount collected during the same period last year, the Indiana State Budget Agency announced Friday.

Overall, receipts were 2.1 percent less than expected, although the numbers for September were not as low as the previous two months.

State Budget Director Brian Bailey said it’s too soon for state officials to act, by making cuts or withholding funds to agencies, for example.

“We still have concerns,” Bailey said. “But, right now, the proper approach is to continue monitoring.”

Individual income taxes are leading the revenue decline. For the quarter – which began July 1 – individual income tax collections totaled $1.17 billion. That’s roughly  $81.7 million below the forecast and $58.4 million less than last year’s first quarter.

Sales tax revenue didn’t meet projections but it was higher than last year. And gambling revenues were down for both the quarter and by double digits – 16 percent – in September alone.

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  • Whoops
    Meant 2012 refund. :)
  • Still waiting on refund
    I'm still waiting on my 2013 state tax refund. Would prefer they keep the tax cut and pay me what I overpaid last year!
    • Where Did Pence Learn Kentucky Windage?
      Trust me Governor Pence, sucking on your thumb and then holding it up to gauge the winds of economic recovery makes you look rather foolish.
    • Volunteer your money
      If you are opposed to helping struggling workers by letting them keep some more of their own money, then please feel free to volunteer your money to the government. No one is stopping you.
    • OMG Give Back the Tax Cut
      OMG! Let's give the Governor back that humongous tax cut we will get over the next 10 years. I will gladly give back my 75 cents per week to help fund the many special interests of his economic development team, including the $1.4 million promised to get a direct airline route between Indy and San Francisco. After all, the route will open up a big pipeline of jobs coming from the west coast to Indy.
    • Pence Tax Cut A Failure!
      Governor Pence said the tax cut would attract more jobs and increase revenue. To that I must say, "Trickle Down Economics" fails again!

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    1. Aaron is my fav!

    2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

    3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

    4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

    5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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