September taxes come in under forecast

Idaho tax collections came in slightly under forecast in September for a fifth consecutive month — the longest stretch of misses in at least four years.

Nevertheless, revenues through the first three months of fiscal 2023 are still up 7.5% or $93.5 million compared to the same period last year, according to figures released Friday by the Idaho Division of Financial Management.

The October revenue report indicates the state collected more than $532 million in general fund taxes last month. That includes $209 million in sales tax, $173.5 million in individual income tax and another $123.9 million in corporate income taxes.

Individual income tax collections for the month were about 1% or $1.87 million above expectations. Sales tax receipts were 4.6% or $10 million less than projected, while corporate tax collections were 3.6% or $4.59 million below par.

Fiscal year-to-date, total general fund tax collections are 3.6% or $49.6 million below expectations. Compared to the first three months of fiscal 2022, however, sales tax receipts are up 10.7% and corporate income taxes are up 50.6%. Individual income tax, though, are off by 2% or about $10 million.

Before this current string of misses, actual revenues had exceeded forecast for 12 consecutive months and for 23 of the previous 24 months.

Idaho lawmakers cut corporate and individual income taxes by $163 million in 2021. They added another $251 million reduction earlier this year, during the 2022 regular session.

During a one-day special session on Sept. 1, they approved a 5.8% flat tax on corporate and individual income. That takes effect Jan. 1, and is estimated to reduce state revenues by another $160 million, compared to current rates.

Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.