Iowa Sales Tax Revenue Down in July; Still Beats 2010
- Aug 29, 2011 | Steven Dunston
Overall Iowa state revenue collection was down in July. Nevertheless, the Legislative Services Agency said sales tax revenues increased 5.8% year over year, pointing to the possibility of modest future economic growth:
At $379.4 million, July 2011 net state tax revenue was $27.6 million or 6.8 lower than July 2010, the LSA said in its monthly revenue report. A significant portion of the reduction was attributed to deposit timing issues. However, even after adjustment the month’s revenue growth is negative.
The increases in income and sales/use tax revenues indicates the underlying economy continues to expand, but perhaps at a slower pace, according to LSA analysts. At $6.512 billion, annual revenue is up a significant 5.9 compared to the previous 12 months, but it remains well below the pre-recession peak level of $6.760 billion in September 2008. —EasternIowaGovernment.com