COVID, an economic shutdown and the resulting delayed due date for income taxes have combined to make the monthly revenue numbers far out of line with projections and typical monthly intakes.

First, with nearly everything closed, nearly everybody staying home and people being laid off, it was inevitable that income tax withholdings and sales tax collections would plummet. Then April 15 became a July 15 due date and the bulk of annual income tax payments were delayed by three months. This all put the state in a big hole. When the income tax payments came, in the later months, it didn’t look so bad, but even afterwards the anticipated revenues remained $500 million shy of projections.

Several pandemic-related matters have contributed to what on the books appears as a very erratic year for tax collections. Indeed, it has been. If business re-openings continue, things may smooth out some and start an upward movement back to “normal”. But remember we’re in that $500 million hole.

Income tax collections have been re-set backwards by 5% and could end up being worse next year. The sales tax collections provide a positive note for now, being a little above projections. Still, if that turns out to be a temporary bounce-back effect or artificially propped up by federal relief money that dries up, the sales taxes along with the economy will readjust to a lower level, like the income tax.

This is not being pessimistic, merely acknowledging the potential for a slow and bumpy recovery – one that will make budget-making especially tricky this coming Indiana General Assembly session.


Indiana Department of Revenue Launches New System for Business Taxes

The Indiana Department of Revenue’s (DOR) second rollout of its tax system update, Project NextDOR, went live earlier this month. This is the second of four rollouts allowing business customers to file, pay and administer several tax types, including sales and withholding, in the e-services portal, the Indiana Taxpayer Information Management Engine (INTIME).

Sales and withholding taxes alone account for over 50% of all state revenue collected each year. This latest rollout allows over 200,000 sales and withholding customers to manage their tax obligations.

While most of these users previously used the INtax system to file certain returns and make payments online, the INTIME system provides additional online options such as filing amended returns electronically, requesting refunds and viewing letters and notices sent.

DOR introduced the Indiana Tax System (ITS) and INTIME in September 2019. Over four years, these systems will replace DOR’s legacy tax systems that have been in production for over 25 years.

Each rollout includes a specific set of tax types. A full list of the round two taxes:

  • Consumer Use
  • County Admissions
  • County Innkeeper’s
  • Food and Beverage
  • Heavy Equipment Rental
  • Indianapolis Motor Speedway
  • Motor Vehicle Rental Excise
  • Out-of-State Use
  • Sales
  • Tire Fee
  • Utility Services Use Tax
  • Wireless Prepaid Cards
  • Withholding

You can review all the new features and receive step-by-step guidance on registering and navigating the new e-services portal at DOR’s web site, ProjectNextDOR.dor.in.gov.

Customers can access INTIME by visiting INTIME.dor.in.gov.

Dedicated customer service representatives are also available to help with INTIME questions Monday through Friday, 8 a.m. – 4:30 p.m. EST, by calling (317) 232-2240 and selecting option “1”.

Resource: Bill Waltz at (317) 264-6887 or email: bwaltz@indianachamber.com