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Indiana Tax Collections Dramatically Exceed Expectations In May

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Brandon Smith/IPB News
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Indiana collected far more in taxes last month than even recent rosy projections anticipated, which leaves the state well-positioned heading into the final month of the current fiscal year.

Indiana got a new revenue forecast in April, which projected how much the state would collect in taxes each month for the next couple of years. That forecast was much more positive than previous predictions.

And Indiana still bested expectations last month by $518 million. Sales, individual income and corporate income tax collections all dramatically exceeded anticipated levels.

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That puts the state nearly $2 billion ahead of its budget plan with just one month to go before the books are closed on the fiscal year.

State budget analysts ascribe the increased revenue to a variety of factors, including increasingly relaxed coronavirus restrictions, the COVID-19 vaccine and federal COVID relief packages.

Lawmakers and the governor have already made plans for spending some of the budget overage, including hundreds of millions to pay down state debt and money for student learning loss.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.