For the first time in state history, overall state tax collections for a fiscal year have topped eight BILLION dollars. State officials have to subtract tax refunds and local option sales tax payments to schools from that eight BILLION dollar figure. It represents GROSS state tax receipts. That means NET state tax collections were over six-point-six BILLION for the state fiscal year that ended Tuesday.

A report from the Legislative Services Agency indicates state tax collections grew by six percent over the 12 month period. That growth rate beat the official expectation of five and a half percent growth in state tax revenue during the fiscal year.

The six percent increase amounts to nearly 377-MILLION dollars in additional tax payments to the state this fiscal year compared to the last one. The increase was spurred by a nearly six percent increase in personal income tax payments to the state, plus corporate income tax payment to the state were up by about five percent. Sales and use tax payments to the state were up by more than four percent. That’s just under the prediction from a three-member panel that sets an official estimate of state tax collections. Lawmakers use that prediction as the basis for their state budget plan.

(Radio Iowa)