The Hoosier State is continuing to crush its monthly revenue targets.

Data released Friday by the State Budget Agency show Indiana collected a total of $1.91 billion in tax revenue for September.

That was $259.9 million, or 15.8%, more than anticipated by the April 15 state revenue forecast.

Records show individual income tax payments outpaced all other tax types by bringing in $686.3 million, or $103.1 million (17.7%) above the monthly estimate.

At the same time, the $831.3 million in September sales tax receipts were $86.6 million (11.6%) more than predicted.

Corporate income tax revenue (by 31.2%), riverboat wagering taxes (13%), and other collections (4.1%) also beat the forecast, adding tens of millions of extra dollars to the state's bottom line.

In fact, Indiana tax revenue came in $428.1 million, or 10.2%, ahead of the target for the July-September period that comprises the first quarter of the state's 2022 budget year, records show.

The State Budget Agency did not attribute the unexpected revenue growth to any single cause. Rather, it said a combination of COVID-19 pandemic recovery, direct federal aid to Hoosiers, and improved sales tax collections from online sellers likely all contributed.

To some extent, the state's stellar first quarter results are a bit of a letdown compared to the April-June period when state revenue came in at an unprecedented $1.22 billion over forecast for the quarter.

Hoosiers are due to get a portion of those funds repaid to them next year as a deduction from their tax liability on their 2021 income tax returns, while some of that money also will go toward prepaying pension obligations for teachers and other government employees.

State officials have not yet said how the excess revenue accumulated so far in the current budget year might be spent.

Though several members of the Republican-controlled General Assembly have hinted a tax cut could be a subject of debate next year at the Statehouse if state revenue continues exceeding the forecast on which annual state spending is based.
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