Iowa tax receipts down — for now

April 30 is Iowa’s most important tax due date with particular person revenue taxes, company revenue, gross sales and use, and gasoline taxes all due on that day.

So when April 30 fell on a Saturday and the deadline for paying these taxes was pushed into Could, tax collections had been considerably affected. Tax collections dropped 1.2 p.c in comparison with April 2021. Nevertheless, Jeff Robinson, a senior fiscal legislative analyst, defined the scenario can be reversed in Could.

Internet tax collections dropped $11.6 million to $978.4 million for the month, a 1.2 p.c lower, Robinson mentioned.

The month-to-month numbers in addition to year-over-year comparisons are affected by an accounting change began in November 2021, Robinson mentioned.

Over the previous 12 months, Iowa internet tax income has elevated $750.3 million, or 7.6 p.c. That comes regardless of what Robinson known as a low degree of financial exercise that occurred throughout the early months of the COVID-19 pandemic. Tax collections had been helped by a current surge in shopper spending due partially to pent-up demand and federal stimulus funds.

Iowa’s complete internet income for the 12-month interval ending April 30 was almost $10.7 billion. That included a rise of $254.6 million (6 p.c) in particular person revenue taxes. Regardless of the pandemic and a major lower within the variety of employed Iowans, particular person revenue tax internet progress has averaged 3.9 p.c over the previous three years.

Gross sales tax income elevated $322.3 million or 9.7 p.c. Gross tax receipts from the sale of autos, which is deposited to the Highway Use Tax Fund, grew $55.2 million, or 12.6 p.c. Automobile gross sales have greater than recovered from the COVID-19-related droop skilled throughout summer season 2020, Robinson reported.

Robinson attributed the $348 million (10.2 p.c) enhance in gross sales and use tax income deposited to the state basic fund to current spending fueled by pent-up demand, federal stimulus funds and a shift away from the acquisition of providers that aren’t topic to the gross sales tax.

In accordance with Division of Income month-to-month gasoline gross sales stories, the entire gallons topic to gasoline tax elevated 10.2 p.c over the latest 12-month interval.

Playing income elevated $86.3 million in that point interval, or 29.7 p.c. That follows a major lower in on line casino playing throughout 2020, when Iowa’s 19 state-regulated on line casino/racetrack areas closed from mid-March to June due to the pandemic. In distinction, Robinson mentioned, playing exercise over the latest 12 months has skilled a big enhance when in comparison with a median yr.

Company revenue tax decreased $36.4 million (4.4 p.c) attributable to a drop in gross deposits of $12.4 million and a $24 million enhance in refunds. That was the primary detrimental progress studying for annual company revenue tax since 2017.

Iowa company revenue tax charges had been diminished at first of 2021, and tax returns for tax yr 2021 at present are being filed and processed.