Des Moines, Iowa — Members of the panel that predicts state tax revenue say recession fears are receeding and, while total receipts are down slightly, that’s due to previously approved tax cuts.
The December report from the Revenue Estimating Conference sets the stage as Republican Governor Kim Reynolds and GOP lawmakers signal they hope to eventually eliminate the state income tax. Iowa Department of Management director Kraig Paulsen, the governor’s top budget advisor, is chairman of the Revenue Estimating Conference.
The panel predicts the state of Iowa will collect over $9.7 billion in taxes during the current budgeting year. By January, there will be more than $3.6 billion in the Taxpayer Relief Fund where unspent taxes are being deposited. Paulsen says consumer spending in Iowa appears strong and, while, corporate income tax reductions have been made, total corporate tax receipts are up 15 percent over the past five months.
Clear Lake CPA David Underwood is another member of the tax-predicting panel.
The Revenue Estimating Conference predicts the State of Iowa will collect over $9.7 billion in taxes in the current budgeting year that ends June 30th. The prediction for the following 12 months is slightly less, primarily due to tax cuts approved in 2018 and 2022.
