Idaho individual income tax collections starting to increase

Idaho’s individual income tax returns came in higher than expected in February, marking the first time that’s happened since the start of the fiscal year.

State officials have blamed the lagging income tax revenues on people not withholding enough from their paychecks after the state’s tax law changed last year.

Keith Bybee with the budget division of the Legislative Services Office says if individual income tax revenues continue to meet projections for the next few months, the boost would have the state ending the fiscal year with about 2 percent less than the previous year in total revenue projections. That’s an improvement from last month’s projection of nearly 3 percent less.

State tax officials have said that individual tax receipts will likely eventually catch up with expectations, as April 15 nears and Idaho residents file tax returns along with checks for what they still owe.