7.5 Percent State Tax Growth In Last Quarter

Statewide Iowa — (RI) — A report from the non-partisan Legislative Services Agency indicates there’s been “extremely strong growth” in state tax collections during the past three months.

Jeff Robinson is the agency’s senior fiscal analyst. 

Income tax receipts are double compared to the same quarter last year, primarily because of federal tax cuts. Iowans get a deduction on their STATE income taxes for the amount of FEDERAL income taxes they pay. That means when they pay less to the feds, they wind up paying more to the state.

The tax cut package Republican lawmakers passed this spring doesn’t kick in until next year. Some of the state income tax REFUNDS paid in July, August and September can be credited to the previous year, according to Robinson’s analysis. State tax growth in the current quarter would be 10 percent rather than seven-and-a-half percent with that adjustment.

Robinson made his comments in a video posted on the Iowa legislature’s website.

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