Processing error complicates state monthly tax income report
The state’s monthly revenue report shows Indiana tax collections last month were more than $80 million below projections. But state budget officials say a processing error in a new tax payment processing system actually threw off those revenue figures.
The new system, intended to provide increased data security, sent about 50,000 of the more than 120,000 tax payments collected in September to what’s called manual processing – meaning a state employee had to personally review the transaction. Officials say the back-up pushed about $86 million in collections to October, skewing last month’s reported figures. Where individual income tax collections appeared to be $52 million below expectations, they were in reality – according to state officials – $23 million ahead.