State income tax collections down $243 million since July

DES MOINES — The latest information from the Legislative Services Agency shows a $243 million drop in personal income tax payments to the State of Iowa over the past five months. 

In October, the three-person panel that sets an estimate of state tax receipts predicted state income tax tax payments would drop, mostly due to the tax reduction plan Governor Reynolds signed into law.

For the first five months of the state fiscal year, there’s been a more than 12 percent decline in income tax payments to the state compared to the same period a year ago. That is a larger drop than had been predicted, but recent accounting changes in state government make direct comparisons difficult.