From Iowa House Republicans:
State revenue continued to rise in October, according to the non-partisan Legislative Services Agency. LSA reported that the state received $72.0 million more than what was collected in October, 2018, which was a 12.1 percent increase. Through the first four months of the fiscal year, state revenue has increased 5.5 percent over FY 2019. This puts revenue collected ahead of the Revenue Estimating Conferences projection of 1.5 percent growth from earlier in October.
Personal Income Tax receipts rose by 7.0 percent when compared to October2018’s figures. Estimate payments and payments with returns were significantly higher than their 2018 levels for the same month, while withholding payments were lower. This is the subcategory which was impacted by the lowering of withholding tables when the tax reform law went into effect in January. For the year, the Revenue Estimating Conference has projected personal income tax collections to decline 0.7 percent. Through the first three months, personal income tax is up 1.8 percent.
Sales and Use Tax collections continued to grow above their FY 2019 levels. For the month, collections saw an increase of 15.0 percent over last year. The size of the increase is impacted by the fact that October 2018 sales tax collections were received in early November, while this year the payments were received in October. For the year, growth in sales and use tax is 9.8 percent which is slightly below the REC projection of 5.7 percent growth.
Corporate Income Tax collections were lower in October, with the state taking in 21.0 million. This was $13.4 million less than what was collected in October 2018. For the year, corporate income tax is 4.4 percent higher than FY 2019. This is still well ahead of the REC projection, which calls for a 2.3 percent increase in collections.
Tax refund payments were down $22.9 million compared to October 2018. School infrastructure distributions to local districts for the month increased by $1.1 million.