IOWA TAX REVENUES UP 4.4 PERCENT FOR PAST 12 MONTHS
3:16 PM, Apr 26, 2011 | by William Petroski |
State tax revenues have climbed by 4.4 percent for the past 12 months, the Iowa Legislative Services Agency reported today.
For the 12 months ending in March, net revenue from all taxes totaled $6.403 billion, an increase of $270.9 million compared to the prior 12 months, officials said.
At $6.403 billion, annual revenue is now back at a level first reached in November 2007 and the total is currently 5.2% below the November 2008 net revenue peak, the report said.
The key contributors included:
– Individual income tax, up $135.8 million, an increase of 5.1 percent. Officials said annual income tax growth had been negative as recently as August.
– Sales/use tax, up $134.8 million, an increase of 6.4 percent. This had also been negative year-over-year in August 2010.
– Corporate income tax, down $17.7 million, a reduction of 7.7 percent. Net corporate tax revenue, at $211.3 million, is below the level experienced through much of the mid-to-late 1990, the LSA report said.
– Fuel tax, up $0.7 million, or 0.2 percent. Taxable diesel fuel sales for the most recent 12-month period are still 4.4 percent lower than the March 2008 peak sales level.
– Gambling tax, up $0.4 million, or 0.1 percent. According to the Iowa Racing and Gaming Commission, seven of Iowa’s 17 state-regulated casinos reported negative gross gambling revenue for the 12 months ending in March 2011. The combined gross revenues for all 17 casinos was down 0.4 percent and annual revenues have not been positive since May 2009, LSA analysts said.
– Cigarette and tobacco tax, no change.
– Insurance premium tax, up $21.1 million, or 26.9 percent. The increase is likely the result of fewer redemptions of tax credits compared to last year, officials said.
For March 2011 alone, net tax revenue totaled $429.6 million, which was 0.2 percent below March 2010. While sales/use tax growth reached almost 10.0% for the month, increased tax refunds issued this March caused declines in both individual and corporate income tax net deposits. Due to a deposit timing issue, gambling tax receipts jumped 23.7% and that increase will reverse in April, officials said.