While many states struggle to fill budget gaps, the state of Indiana took in $150 million more than expected during the month of May. State officials reported Friday that sales tax collections were $28 million above May collections last year. Individual income tax collections were $177 million above the same time in 2010.
The figures are good news, but State Budget Director Adam Horst cautioned against using one month's totals to draw firm conclusions. The state says timing was partly responsible for the increase in individual income taxes. For example, tax day was later this year, and more revenue was deposited in early May instead of late April.
Still, Horst said it's clear that income tax collections have improved dramatically due to strong employment and income growth.
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