Tax collections continue to improve in Indiana but could turn downward with the national economy soon.
The state said Tuesday it took in $12.3 million more in taxes than expected last month and that income and sales tax collections continued to improve through the end of August. However, gambling taxes from riverboat casinos came in $5.2 million less than expected.
State Budget Director Adam Horst cautioned against counting on collections continuing to improve. He said in a statement that the state's economic forecaster — Global Insight — expects the state to take a hit as the national economy sags in the coming months.
Improved tax collections combined with spending cuts over the last year to help the state amass $1.2 billion in cash reserves.