Brad Iverson-Long reports for the first time in 2012, Idaho tax revenues fell short of their target. The state’s general fund brought in $3.4 million less than expected, dragged down by personal income tax returns. The state is still $33 million above its budget forecast with a month left in the current fiscal year.
State tax revenues last fell below projections in December of 2011, before state officials lowered tax projections.
Idaho paid out $49.3 million in individual income tax refunds, which was nearly $16 million more than expected. The disparity was due to changes in refund patterns based on new administrative practices. The larger-than-usual refund payments have happened since March.
The monthly report was buoyed by Idaho receiving its share of a national settlement with mortgage servicers. The state received nearly $14 million in that settlement, while borrowers in Idaho received close to $100 million in benefits including loan modifications, refinancing programs and other relief.
According to the May revenue report put out by the Division of Financial Management, corporate income tax collections were $1.6 million above projections while the sales tax was just $100,000 above its forecast.
