By KEITH RIDLER, Associated Press
BOISE, Idaho (AP) — Idaho’s personal income taxes, sales taxes and corporate taxes all fell slightly below monthly projections for August, the Idaho Budget Office reported Tuesday. ‘State.
The $38.5 million drop below expectations is still a tiny fraction of the state’s $6 billion budget. But it’s worth noting for a state that in recent years has more often seen monthly incomes far exceed forecasts, spurred by a combination of rapid population growth and three influxes of federal COVID-19 bailout money that have warmed the state’s economy.
The August revenue forecast was revised upwards earlier this month by the Financial Management Division. The actual revenue numbers released Tuesday by the Office of Legislative Services were slightly lower than those higher projections, but are still higher than those lawmakers worked with when setting the state budget in session. legislation earlier this year.
Financial Management Division Administrator Alex Adams, Republican Gov. Brad Little’s budget chief, said there has been economic volatility, but some key indicators show the state is heading in the right direction. Among these is a long-term trend of increasing income.
“In general, we feel good where we are,” he said. “We will continue to assess and make those good Conservative government budget decisions that the Little government is known for and why we achieved a triple A credit rating.”
Fitch, a leading international credit rating agency, announced in November that it had upgraded Idaho to the highest credit rating a state can obtain. Additionally, Idaho’s unemployment rate has been back for months to pre-pandemic levels, currently at 2.6%.
Overall, the state remains in good financial health with revenue $20 million higher than forecast for this fiscal year, which began in July. The state also has a balance of $600 million from last year and a projected budget surplus this year of about $1 billion.
But elected officials are concerned about economic headwinds, primarily high inflation Little cited in calling a special session of the Legislative Assembly earlier this month.
During the one-day session, lawmakers passed a $500 million income tax refund as well as an ongoing personal and corporate income tax cut of more than $150 million. dollars by creating a flat tax of 5.8%. Lawmakers also earmarked $410 million for education.
Income taxes for August were $149 million, about $15 million lower than expected. But that was no surprise due to an income tax cut passed by lawmakers in January. Sales tax was about $215 million, about $10 million less than expected. Corporate income taxes for August were $22 million, $17.5 million lower than expected.
Idaho’s big income months are January, when Christmas shopping season sales taxes start to show up, as well as April, when income taxes are due, and June, when travel season kicks off and revenues grow, supported in part by money from tourists and the state’s 6% sales tax.
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