Final Idaho tax revenue numbers show Idaho took in $56 million less than expected in April, the largest month for tax collections. That’s slightly higher than preliminary reports showing a $55.5 million shortfall. Idaho is now $83.1 million below tax revenue projections from state economists and approximately $14 million below the budget set by lawmakers for the current fiscal year, which ends on June 30.
Gov. Butch Otter and several state lawmakers expressed disappointment about the shortfall when the early revenue numbers were released, but he and lawmakers said it’s unlikely that a special session will be needed to bring the state budget back into balance. Lawmakers gave the governor several tools, including dipping into reserve funds and limiting state agency spending, to meet tax revenues. Otter and Democratic candidate for governor Keith Allred also said the higher-than-expected sales tax collections could be a sign that the state economy is picking up steam.
The $500,000 change in tax revenues from the preliminary report to the finished report was fueled by a $900,00 drop in the collection of miscellaneous revenues, which include the tax on health insurance premiums, interest earned from idle funds in the state treasurer’s accounts, and other fees and revenue sources. Derek Santos with the Idaho Division of Financial Management (DFM) said many of the revenue sources in the miscellaneous category are difficult to predict.
Revenue numbers from DFM shows that final collections from the personal income tax and sales tax were slightly higher than preliminary figures. Personal and corporate income taxes, which were at their yearly high due to the April 15 income tax filing deadline, remained well below projections and fueled the $56 million shortfall.
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