Corporate income tax growth was also peppy, soaring 63.5%, up from $1.13 billion a year ago to $1.847 billion now.
For the year to date—Illinois’ fiscal year ends June 30—individual income tax receipts are up $3.91 billion, or 18.8%, and corporate income taxes are up $1.973 billion, or 56.5%.
The figures come from the Illinois Comptroller’s Office via the Commission on Government Forecasting & Accountability, the Legislature’s fiscal unit. And they explain why Illinois, in Gov. JB Pritzker’s new fiscal 2023 budget, has been able to boost spending on items such as social services and public schools while also offering taxpayers $1.8 billion in one-time cuts and rebates and paying off hundreds of millions of dollars in state health care and pension debt .
While reporting the good news, COGFA warned it may not continue much longer, with some of the revenue boost due to one-time factors.
For one, changes in federal tax policy have encouraged some people to advance their payments, something that helps in one year and will hurt in another. Here in Illinois, the deadline for individual income tax payments was delayed a month last year, to May 17, meaning that April-to-April comparisons will be misleading.
COGFA also noted well-above-average stock market returns last tax year boosted state income from capital gains taxes, but do not appear in the offing to repeat so far this year; disappearing federal stimulus spending; and the impact of inflation and the war in Ukraine that could put a damper on state economic activity.
Still, sales tax receipts, which are less subject to some of the factors above, were up 5.5% last month and 14.2% year to date.
Bottom line: The party’s not over yet. But the state might want to cancel that order for more booze, at least now.