Better than expected sales tax and individual income tax collections translated to good news for state government coffers.
The Indiana State Budget Agency reported general fund revenues for February totaled $1,022.7 million, which is $147.6 million or 16.9% above December 2020 revenue estimates and $100 million or 10.8% above revenue in February 2020.
The state said with the later opening of tax season by the federal government in February 2021 compared to late January in 2020, individual income tax refunds were more than $130 million below the monthly estimate and about $125 million below prior year actuals.
Sales tax collections totaled $695.2 million for February, which is $62.4 million or 9.9% above the monthly estimate and $62 million or 9.8% above revenue in February 2020.
Monthly collections attributable to sales tax excluding gasoline use tax were $61.6 million above the monthly estimate and $68.9 million above prior year actuals, the state said. The February performance, which mostly reflects January economic activity, continues to show a positive trend relative to prior year actuals, following a 7.6% year-over year growth for the period of July to January.
The state said overall monthly fluctuations from July 2020 to February 2021 may have been influenced by unusual factors including the changing restrictions related to the pandemic and recent federal policy actions on assistance programs, economic impact payments, interest rates and more.
Individual income tax collections totaled $278.4 million for February, which is $90.6 million or 48.3% above the monthly estimate and $85.5 million or 44.4% above revenue in February 2020.
Riverboat wagering collections totaled $21.4 million for February, which is $4.7 million or 17.9% below the monthly estimate and $14.0 million or 39.6% below revenue in February 2020.
Year-to-date general fund revenues totaled $11,713.7 million, which $396.9 million or 3.5% above the December 2020 revenue forecast and $1,410.8 million or 13.7% above revenues through the same period in the prior fiscal year.