By Steve Bittenbender | The Center Square contributor
(The Center Square) – Indiana revenues for April fell by more than 14% from the year before. That’s according to data released by the state’s budget office.
The $2.86 billion the Indiana State Budget Agency reported was down more than $470 million from the $3.33 the state collected in April 2022.
The drop came because Indiana received $471 million less in individual income taxes last month compared to the same month last year.
Hoosiers paid a 3.23% income tax rate in 2022. That dropped to 3.15% starting in January. Because of that, budget officials expected lower income tax revenues, and the actual figure missed projections by just $3.2 million.
Overall, the general fund revenues also missed state targets by $3 million, or a tenth of a percentage point.
Sales taxes accounted for $874.9 million in April, down almost $10 million, or 1.1%, from the amount the state received in April 2022. However, the state saw insurance taxes more than double from April 2022, with Indiana receiving $43.5 million last month, compared to $20 million the prior year.
Interest payments to the state also grew significantly. The $20.4 million received last month was $17.8 million more than it got in April 2022.
Through the first 10 months of the fiscal year, Indiana has received $17.15 billion in general fund revenue. That nearly matches was state budget officials projected through April for the annual budget. Compared to last year, the state has reported an increase of $194.8 million, or 1.1%.
Indiana has seen personal and business tax revenues drop by $483.7 million for the fiscal year, but money from sales taxes has increased by $457.7 million.
Indiana officials remain bullish on the economy. Last month, they issued a revised economic forecast to show they expect $1.5 billion more coming into the state through the 2025 fiscal year.
And that’s expected even as the state continues to lower the personal income tax rate. The budget lawmakers passed last month reduced the rate incrementally through 2027 when Hoosiers will pay a 2.9% tax on their income.