IA state revenue soars but growth to slow as tax cuts kick in

DAVID PITT, Associated Press KAALTV

DES MOINES, Iowa (AP) – A state panel says Iowa’s economy continues to perform well with record tax receipts for the fiscal year that ended in June, but tax policies enacted by lawmakers will slow the revenue growth in the coming years.

Iowa closed fiscal year 2022 with revenue growth of more than $1 billion, or 11% more revenue than the previous year.

For the current fiscal year, the Revenue Estimating Conference estimated Thursday that state revenue will fall 2.7% to $9.53 billion due to the loss of about $575 million in revenue from tax cuts the legislature enacted.