State tax collections are continuing to grow significantly, but tax cuts that take effect soon will likely alter that trend. Net state tax revenue is up six-point-seven percent over the past five months. Jeff Robinson, a fiscal analyst for the Legislative Services Agency, notes the top state income tax rates for individuals and corporations will be reduced January 1st.
In October, a panel of experts predicted those cuts will lead to a two-point-seven percent reduction in total state tax collections. The Revenue Estimating Conference meets again this Wednesday to review the latest data and settle on a new prediction. The panel’s total tax estimate will be used as a starting point for state budget decisions.