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Illinois’ sales tax revenue growth far higher than Indiana’s
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| Contributor | ArmyDem |
| Last Edited | ArmyDem Jul 08, 2011 06:10am |
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| Category | Blog Entry |
| News Date | Thursday, July 7, 2011 12:00:00 PM UTC0:0 |
| Description | Thursday, Jul 7, 2011
* Well, here’s some good news for a change. The legislature’s Commission on Government Forecasting and Accountability is reporting that state sales tax receipts grew 8.3 percent during the past fiscal year.
…Adding… Take out all the tax amnesty proceeds, and the result is 6 percent growth. However, it’s not a sure bet that none of those proceeds would’ve been realized, and June over June receipts grew 8.2 percent and May over May growth was 7.6 percent.
Unlike the income tax, the General Assembly didn’t increase sales tax rates, so that’s a pretty darned good showing. Overall, state revenues grew $3.4 billion in the last fiscal year. Most of that was from the tax hikes, but some was from economic growth…
“Obviously the tax changes enacted halfway through the fiscal year played the key role in the increase, as did the tax amnesty program which occurred in the fall,” said a COGFA analysis. “The magnitude of the effect of those items often served to mask the underlying improvement in the economic sources that was happening simultaneously with the tax changes.
“While impossible to dissect and assign values to each, it was clear from receipting performance that revenues were recovering from last year’s dismal showing which saw receipts plunge over $2 billion.”
* By comparison, as of May, Indiana’s sales tax receipts were growing at just a 4.9 percent annual rate - meaning our revenue growth was almost 70 percent higher [22 percent sans all tax amnesty proceeds]. Illinois’ personal income tax receipts grew by 30.4 percent last fiscal year. But factor out the tax hike and Illinois income tax receipts also appear to be growing at a higher rate than Indiana’s 17.3 percent.
While not the be-all, end-all analysis, it doesn’t appear that Illinois is falling behind its Hoosier neighbor just yet, despite the tax hike. |
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