(Des Moines)– Consumer spending in Iowa is driving state sales tax revenue higher. Over the past six months, there’s been a more than ten percent increase in sales tax payments to the state.
The latest report of overall tax collections shows net state revenue grew nine-point-one percent last month compared to December of 2020. Senior fiscal analyst Jeff Robinson with the Legislative Services Agency said, “In summary, Iowa net General Fund revenue continues to grow at a strong pace, with sales tax posting remarkable year-over-year gains.”
He says corporate income tax growth has moderated but remains positive. Robinson said it’s likely there was a “modest gain” in the amount of personal income tax payments made to the state, however an accounting change made in mid-November makes a “precise” reading difficult.
