The COVIS-19 pandemic is already having an impact on the state’s coffers.
The March revenue report, released Friday afternoon, showed sales tax revenue was more than $25 million lower than projections, missing the mark by about four percent. Sales tax revenues make up roughly half of Indiana’s tax collections.
In addition, other revenue sources also were lower than expected in March. Corporate taxes were down nearly $18 million below the monthly estimate; individual income taxes were slightly more than nine million below expectations; gambling taxes were down by $13.5 million; other taxes were $4.2 million below the monthly estimate.
State officials attribute the decrease in revenue due to a lack of economic activity because of COVID-19.
Overall, tax revenue was six percent lower than predicted.
However, the over state budget is still slightly ahead of estimates for the year. Year-to-date, the state expected to have collected $11.37 billion by now, and it has collected $11.4 billion.
To address the expected shortfall, the administration announced several steps it was taking in its daily virtual media briefing. You can hear them in the Leon-Tailored Audio above. It runs the usual 58 minutes.