Indiana revenue collections improved in July, but that’s mainly because $900 million in taxes that had normally been due in April and June were deferred until last month.
Indiana’s monthly revenue report, released Friday, shows that the state is still falling short of the funds that were expected when the forecast was made last December. For the first 13 months of the two-year budget cycle, general fund collections were about $612.5 million—or 3.4%—below the December forecast and $161.5 million—0.9%—below the same period from July 2018 to July 2019.
The state’s economy and tax collections have been hit hard by the COVID-19 pandemic, which led to Gov. Eric Holcomb enacting orders that shut down all but the most essential businesses for weeks beginning in late March.
Most businesses have reopened, but under restrictions aimed at reducing the spread of the highly contagious virus.
Unemployment remains high as 12,533 new claims for unemployment were filed the week ending Aug. 1, a decline over prior weeks. The state’s unemployment rate in June was 11.2%, up from a low of 3.2% in March before the pandemic.
Other highlights from the July revenue report:
– Individual income tax collections from July 2019 through July 2020 were $311.3 million, or 4.7%, below the December forecast and $149.9 million, or 2.3%, below the same period from July 2018 to July 2019.
– Corporate tax collections for the same period were $32.0 million, or 3.6%, below the December estimates and $105.5 million, or 10.9%, below the same period from July 2018 to July 2019.
– Riverboat wagering collections were $400,000 for July, which is 61.0% below the monthly estimate and $54.8% below revenue in July 2019.
– Racino wagering collections totaled $9.3 million, which is 18.8% below the monthly estimate and 6.4% below revenue in July 2019.