Indiana revenues begin fiscal year mostly on target, though sales taxes continue to lag

Indiana started off its new fiscal year on a positive note, collecting 2 percent more revenue than its spending plan expected as it begins the second year of its budget cycle.

Indiana collected about $30 million more than the budget plan projected in July.

That’s largely down to individual income taxes, which came in nearly 8 percent better last month than expected.

READ MORE: Where does Indiana state budget funding come from?
 

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And the month’s positive overall performance is in spite of sales tax revenues, which continue to scuffle. Sales tax collections missed the mark almost all of the last fiscal year. And while that tax type did grow in July 2024 compared to the previous year, it only grew by 0.2 percent — far less than the three months before it.

Most of Indiana’s yearly revenues are collected in the second half of the fiscal year.

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