Total tax revenues for July—the first month of Indiana's 2016 fiscal year—came in $6.1 million below projections in the state budget, the State Budget Agency disclosed Monday.
The tax revenue, which totaled $1.04 billion, missed projections by less than 1 percent.
The biggest shortfall came from corporate income taxes, which were $16.7 million—or more than 60 percent—below projections. If corporate receipts had been on target, July would have produced more than the projected revenue.
The revenue numbers are important because Gov. Mike Pence is expected to decide whether to pay off the state’s federal unemployment loan this fall based on how well the economy performs. Pence could choose to spend about $250 million to pay off the loan by Nov. 9, saving the state’s employers a projected $327 million in penalties in the upcoming year.
Although corporate tax was lower than expected, the individual adjusted gross income tax revenue rose 11.2 percent, which was a $35.2 million more than what the state estimated. In addition, racino wagering increased $1.4 million.
Riverboat wagering was down 56.8 percent, but that was only $500,000 below projections.
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