Iowa tax collections grew faster than predicted

DES MOINES, Iowa (AP) — Preliminary estimates show that tax collections in Iowa grew by 5 percent in the budget year that ended last week, a much larger increase than originally projected.

The Waterloo-Cedar Falls Courier reports that figures from the Legislative Services Agency show the growth was nearly double the 2.6 percent increase projected by a state panel.

Tax collections for the year that ended June 30 totaled more than $6.1 billion, up from $5.8 billion last year. Collections for personal income taxes and sales taxes rose modestly, while corporate income tax receipts jumped by 32 percent.

Gov. Terry Branstad says there is no question it was a good year and the state’s financial outlook is encouraging. He says the state’s cash reserve and economic emergency fund are also fully funded.