State tax collections in August were nearly $42.5 million below the total taxes paid to the state in August of last year.
That 6.7% drop is mainly due to a decline in the amount of income taxes Iowans are paying after a series of tax cuts enacted over the past few years. A report from the Legislative Services Agency shows that in the months of July and August, state income tax receipts fell 18.6%. In March, a state panel
estimated total state tax revenue will fall by well over half a billion dollars during the current fiscal year.
Corporate income taxes and sales tax receipts grew during August, but not enough to offset reduced income tax payments from individuals and couples.
