Indiana general revenue for July was $44 million above expectations and around $100 million higher than the same period a year earlier, according to the monthly revenue report of July 2012 state tax collections.

The Indiana State Budget Agency says general revenues still need to increase less than 2.2 percent to meet the full fiscal year forecast.

Other results from the report include:

• State general revenues totaled $1,113 million, $44 million (+4.1 percent) above target and $101 million (+10.0 percent) above collections for the same period last year.
• Sales tax collections totaled $578 million for the month, $19 million (+3.4 percent) above collections for the same period last year.
• Individual income tax collections totaled $388 million for the month, $29 million (+8.0 percent) above target and $83 million (+27.3 percent) above collections for the same period last year. Payroll withholdings increased 15.2 percent compared to the same period last year.

Sales tax collections increased 3.4 percent over the same period last year, following an increase of 5.5 percent in June.

Individual income tax collections exceeded the July target by $29 million, exceeding collections for the same period last year by 27.3 percent. The large year-over-year increase is in part caused by a timing issue related to the number of payrolls in a given month compared to that same month in the prior year. As a result, payroll withholdings increased 15.2 percent compared to the same period last year. This issue will reverse itself next month. Payroll withholdings averaged 4.5 percent growth in FY 2012. Beginning in FY 2013, monthly targets have been adjusted to account for this timing issue, so only year-over-year results are impacted.

Source: State of Indiana