Taxes

Sen. Travis Holdman (R-Markle) says some Hoosier taxpayers would have seen tax increases without legislation approved during the special session. (Lauren Chapman/IPB News)
Brandon Smith

Lawmakers approved two substantial tax measures during Monday’s one-day special session.

Many of the provisions sought to conform state tax laws with major policy changes made by the recent federal tax reform bill – which Sen. Travis Holdman (R-Markle) says is part of what made a special session necessary.

The state has now brought in more than $100 million less in corporate taxes than even updated, pessimistic projections predicted. (Brandon Smith/IPB News)
Brandon Smith

Indiana tax collections are still behind the state’s budget plan – by a small amount – as the final quarter of the fiscal year began.

Total revenues are about $26 million less than planned through 10 months of the current cycle. That’s a small miss – only about two-tenths of a percent off the mark. It was helped by a strong April, which brought in about $42 million more than expected.

The Internal Revenue Service has extended the deadline to file taxes until midnight April 18, following a system outage Tuesday morning. 

The Indiana Department of Revenue announced it will also extend its deadline. 

People attempting to file their taxes electronically were still able to on Tuesday, but those making payments weren't able for most of the day. 

“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said acting IRS Commissioner David Kautter in a statement. 

Tax Filing Deadline Approaches

Apr 11, 2018
Hoosiers who use paper to file their taxes must have them in the mail by April 17. (Lauren Chapman/IPB News)
Brandon Smith

Hoosiers have a little less than a week left to file their taxes for 2017.

Those who file their state and federal taxes online can submit electronically any time before April 18. For those who use paper to file, Indiana Department of Revenue Commissioner Adam Krupp says their returns must be in the mail by April 17.

Indiana tax collections surpassed expectations in February for the third consecutive month – and only the third time this fiscal year.

Total tax collections were about $30 million better than expected last month. The positive month was spurred by individual income tax collections more than 30 percent better than projected. Sales taxes came in essentially right on target.

Indiana tax revenues surged ahead of the state’s revised, more pessimistic expectations in January. Yet seven months into the current fiscal year, total collections are still below target for the state budget approved last year by lawmakers.

Indiana’s tax collections slightly exceeded expectations in December – the first time that’s happened this fiscal year.

A revenue forecast released Monday predicts Indiana will collect hundreds of millions of dollars less in taxes than previously expected over the next year and a half. But legislative fiscal leaders say it’s not time to panic.

State Leaders Shrug Off Recent Revenue Shortfalls

Dec 15, 2017

 

State leaders are shrugging off concerns about recent tax revenue shortfalls, particularly with corporate tax collections. They say the underwhelming revenues are a result of explainable outside forces.

Indiana tax revenues fell further behind expectations as the state finished the first quarter of its fiscal year.

The first two months of the fiscal year put the state more than $40 million below expectations. September made it more than twice as bad.

Total tax collections last month were more than $66 million less than projected, which puts the state $107 million off the mark for the fiscal year.

Sales, corporate, and individual income taxes all missed their targets in September. Corporate and sales taxes haven’t yet met expectations at any point this fiscal year.

President Donald Trump called the GOP’s tax reform plan a “middle class miracle” as he rolled out details in a speech in Indianapolis Wednesday.

Trump said tax reforms passed in Indiana before and during Vice President Mike Pence’s time as governor should be a model for national change.

State lawmakers vented frustrations Tuesday at a lack of details on what unemployment and employer tax fraud costs the state.

At the sole meeting of a summer study committee on those issues, regulators said the state may be missing millions in revenue because of fraud – but couldn’t say how much they’ve clawed back.

State workforce development officials say Indiana has the second-lowest benefits fraud rate in the nation – after Hawaii – and has saved more than $200 million by preventing and collecting on fraud in the past three years.

Indiana continues to struggle in its new fiscal year as revenues came in below expectations in August.

Total state tax collections came in about $18 million off the mark in August. That puts the state more than $40 million behind projections this fiscal year.

Sales and corporate tax revenues continue to struggle. Corporate taxes in particular suffered last month, $31 million less than expected, which is about 700 percent below target.

Indiana’s new revenue forecast is slightly more optimistic about the state’s fiscal picture for the next two years. But House and Senate fiscal leaders say it doesn’t change their budget plans.

Senate Changes Road Funding Bill, Adds New Fees

Mar 28, 2017

Senate lawmakers put their own stamp on this session’s comprehensive road funding bill while keeping the measure’s primary tax increase intact.

After amendments in a Senate committee, the road funding bill still increases the gas tax by 10 cents. Now, that increase would happen over two years – 5 cents a year. The diesel fuel tax would only go up six cents, instead of 10, also over two years.

The new $15 annual fee for all vehicles is unchanged; the Senate added a $100 annual fee on all commercial vehicles and a $5 fee on all new tire purchases.