Gem State sees record $6.2B tax revenue in fiscal 2022

General fund tax revenues hit a record $6.2 billion in Idaho in fiscal 2022, beating expectations by more than $1 billion.

State revenues topped $4 billion for the first time in 2020. Last year, they topped $5 billion, and in the fiscal year ended June 30, they hit $6.197 billion, according to revenue figures released Friday.

That was a 23.7% increase over last year, and 19.4% higher than projections.

Gov. Brad Little quickly took credit for the results, saying the state’s “red hot” economy reflects the resiliency of its citizens and businesses.

“Combined with years of fiscal conservatism, reining in state spending and our status as the least regulated state in the country, we will be able to provide Idahoans even more tax relief and make key investments where they count,” he said in a news release.

Corporate income taxes accounted for nearly two-thirds of the revenue surplus. The state collected a record $1.04 billion from businesses last year — nearly three times as much as expected.

Individual income tax revenue came in about $300 million or 13% higher than projections. Sales tax collections were up 9.5% year-over-year, to $2.195 billion.

“As Idahoans grapple with ever-increasing prices for gas, food, energy and everything in between under (President Joe) Biden’s watch, in Idaho we’re leading the way and showing the rest of the country how to create prosperity for our people,” Little said.

The Legislature only appropriated $4.4 billion last year, with a $305 million ending balance. Consequently, the state ended the fiscal year with a budget surplus of nearly $1.4 billion.

Lawmakers earlier this year allocated much of the money to the governor’s “Leading Idaho” infrastructure investment package, while also approving a record public schools budget and providing record tax relief.

Little indicated that tax relief, infrastructure and education will remain his priorities going forward.

“The strength of Idaho’s economy and the sound management of state government means we will continue to be able to invest record amounts into schools, roads, water and other key areas to keep up with growth and improve the lives of the people we serve,” he said.