Indiana’s revenues continue to show improvements, as the fiscal year (FY) 2012 revenues exceeding the latest forecast by approximately $50 million.
In the report released Friday, the state noted that sales tax collections increased 3.4 percent over the same period last year, following an increase of 5.5 percent in June. Overall sales tax collection was $578 million for the month, $19 million above the same period last year.
Individual income tax collections exceeded the July target by $29 million, exceeding collections for the same period last year by 27.3 percent. The large year-over-year increase is in part caused by a timing issue related to the number of payrolls in a given month compared to that same month in the prior year. As a result, payroll withholdings increased 15.2 percent over the same period last year. The state noted that this issue will reverse itself next month.
Payroll withholdings averaged 4.5 percent growth in FY 2012.
The individual income tax collections totaled $388 million for the month, $29 million (8 percent) above the target and $83 million above the collections for the same period last year.
State general revenues totaled $1,113 million above the target amount (4.1 percent increase) and $101 million (10 percent increase) above collections for the same period last year.