Tax payments to the state of Iowa were up significantly through the end of October, but some of that growth cannot be counted in the current budgeting year.
State tax revenue was up 12 percent from July 1st through October 31st.
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That’s Jeff Robinson, the senior fiscal analyst for the Legislative Services Agency. Some of the money is being recorded as taxes due BEFORE July 1st. It erased some of the deficit in the last state budgeting year. Second, the Iowa Department of Revenue implemented a tax processing change. A significant amount of taxes came into the state treasury on October 31st rather than sometime in November. Robinson says when adjusting for those two issues, tax payments to the state were up about two-point-three percent for the past four months.
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In mid-October, a three-member panel reduced its official prediction of state tax collections. If tax revenue does not grow significantly THIS November compared to LAST November, at least 35 million dollars will have to be cut from the current state budget.
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