Idaho tax revenues miss forecasts again in January
BOISE — January state tax revenues were again far short of forecasts, falling 21.9 percent below for the month and putting the state’s total revenues $128.3 million behind forecasts for the fiscal year to date, or 4.7 percent.
Once again, individual income tax withholding was the main source of the discrepancy, as it has been every month so far this year. This is being attributed to withholding issues that followed major tax law changes at both the state and federal level in the past year. For the fiscal year to date, individual income tax receipts are $145.8 million under the projection.
If the shortfall is just because of withholding changes, nearly all of it would come in when Idahoans file their state income tax returns in April and discover they have taxes due; the only exception would be those who can’t afford to pay up by April 15 and have to go on payment plans, possibly extending their payments beyond the end of the state’s fiscal year June 30.
“This is most likely a timing issue that will right itself this spring,” wrote Derek Santos, chief economist for Gov. Brad Little’s Division of Financial Management, in the latest monthly General Fund Revenue Report, issued Thursday afternoon.