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Iowa State Tax Collections Up 8.4% in First Three Quarters of Fiscal Year

DES MOINES, IA (Radio Iowa) State tax collections are soaring — up nearly eight-and-a-half percent in the past nine months compared to the same period in the previous fiscal year. Jeff Robinson of the Legislative Services Agency says there have been increases in each of the main sources of revenue for the state.

“Individual income tax up 6.3%, sales and use tax up 9.7%,” he says, “and corporate income tax up 7.7%.” The state paid out 30 million dollars MORE in income tax refunds so far THIS year compared to the first three months of 2021.

“But it still very early in the tax filing season for any trend to be evident,” Robinson says. Iowa income taxes are due by April 30th. The tax cuts Governor Reynolds signed into law March 1st will start going into effect for the NEXT tax year. The immediate repeal of state taxes on retirement income and the first stage of reducing the income tax for individuals are projected to contribute to a nearly 15 million dollar in reduction in total tax payments to the state.

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