Betsy Russell reports: Idaho’s state tax revenue surged nearly $16 million ahead of forecasts in September, beating the forecasted level by 6.4 percent. The extra revenue was enough to more than offset shortfalls compared to forecasts for the past two months, putting the state 1.6 percent ahead of forecasted revenue for the fiscal year to date.
Nearly every revenue category beat its projection in September. Individual income tax receipts were 11.3 percent ahead; corporate taxes were 5.5 percent over forecasts; and sales taxes beat forecasts by 3.2 percent. You can see the state’s full general fund revenue report here for the month.
Gov. Butch Otter touted the news when he addressed the Idaho Licensed Beverage Association annual convention today, drawing some appreciative whistles after he said, “We were off about $16 million – we brought in $16 million more than we thought we would.” He noted that income taxes were a big driver of that, even though Idaho lowered its top rates for both individual and corporate income taxes two years ago. Otter said the news “validates our belief … that lowering taxes encourages more economic activity.”
He told the liquor purveyors that just as “you’ve seen people try to drink themselves sober,” he doesn’t buy economic theories that say “the government can spend themselves rich,” and defended tax cuts Idaho’s granted the past two straight years, cutting into state revenues despite tough economic times and forcing “some tough decisions.” Said Otter, “In the long run, it paid off because we really created a climate for growth.”