Iowa tax revenue down – for now | State

0

The calendar’s fault.

April 30 is Iowa’s most important tax due date, with personal income taxes, corporate income taxes, sales and use, and fuel taxes all due on that day. .

So when April 30 fell on a Saturday and the deadline for paying those taxes was pushed back to May, tax collection was significantly affected. Tax collections fell 1.2% from April 2021. However, Jeff Robinson, a senior tax legislative analyst, explained that the situation will be reversed in May.

Net tax revenue fell $11.6 million to $978.4 million for the month, down 1.2%, Robinson said.

The monthly figures as well as year-over-year comparisons are affected by an accounting change that began in November 2021, Robinson said.

Over the past 12 months, Iowa’s net tax revenue has increased by $750.3 million, or 7.6%. This comes despite what Robinson called a low level of economic activity that occurred during the early months of the COVID-19 pandemic. Tax collections have been helped by a recent increase in consumer spending due in part to pent-up demand and federal stimulus payments.

Iowa’s total net income for the 12 months ending April 30 was nearly $10.7 billion. This included a $254.6 million (6%) personal income tax increase. Despite the pandemic and a significant decrease in the number of employees in Iowa, net personal income tax growth has averaged 3.9% over the past three years.

Sales tax revenues increased by $322.3 million or 9.7%. Gross tax receipts from the sale of vehicles, which are deposited in the Road Use Tax Fund, increased by $55.2 million, or 12.6%. Vehicle sales have more than recovered from the COVID-19 crisis experienced in the summer of 2020, Robinson reported.

Robinson attributed the $348 million (10.2%) increase in sales and use tax revenue deposited to the state’s general fund to recent spending fueled by pent-up demand, federal stimulus payments and abandoning the purchase of services that are not subject to sales tax.

According to the Department of Revenue’s monthly fuel sales reports, the total number of gallons subject to fuel tax has increased by 10.2% over the past 12-month period.

Game revenue increased by $86.3 million during this period, or 29.7%. This follows a significant decrease in casino gaming in 2020, when all 19 state-regulated casinos/racetracks in Iowa closed from mid-March through June due to the pandemic. In contrast, Robinson said, gambling activity over the past 12 months has seen a sharp increase compared to an average year.

Corporate income tax decreased by $36.4 million (4.4%) due to a decrease in gross deposits of $12.4 million and an increase of $24 million in refunds. It was the first reading of negative annual corporate income tax growth since 2017.

Iowa corporate income tax rates were reduced in early 2021, and tax returns for the 2021 tax year are currently being filed and processed.

Share.

About Author

Comments are closed.