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Indiana tax revenues steady in first quarter of new fiscal year

By Brandon Smith

Posted October 20, 2023

Indiana tax revenue collections have exceeded state budget plan expectations for 29 consecutive months. (Brandon Smith / IPB News)

A quarter of the way through the new fiscal year, Indiana tax collections continue to outperform expectations.

Three months into the fiscal year, Indiana has already collected about $65 million more than it needs for its state budget plan. Now, that’s just a little more than 1 percent more than expected. But the state has now exceeded its budget revenue expectations for 29 consecutive months.

Individual income tax collections have led the way this year, performing better than expected by nearly $150 million.

Sales taxes have been the reverse, failing to meet expectations all three months. But there’s a reason for some of that. The new state budget redirected more of the sales tax on gasoline away from the state’s General Fund and into the state highway fund — ensuring even more of the taxes you pay at the pump go solely to road construction.

That means the state’s revenue reports show fewer sales tax collections than are reflected in the budget’s expectations.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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