Prairie State Wire

State tax receipts in Illinois have shown resilience, despite projections of budget shortfalls for the upcoming year. According to a report by the Commission on Government Forecasting and Accountability (CGFA), personal income taxes increased significantly, with December 2024 seeing $524 million more than the same month in 2023. While corporate income tax receipts decreased by $16 million, sales tax receipts saw an increase of $43 million. Overall, non-federal revenues were up by $603 million compared to December 2023.

For the first half of fiscal year 2025, spanning from July 2024 to December 2024, non-federal receipts increased by $712 million or 2.9% compared to fiscal year 2024. Personal income taxes contributed notably to this growth with an increase of $1,182 million over the same period in 2023. However, corporate and sales taxes remained lower than their respective figures from 2023.

Noah Finley, Illinois NFIB State Director, commented on the situation stating: “While Illinois’ economic and fiscal situation continues to lag other states, tax revenue doesn’t appear to be the problem.” He emphasized that policymakers should resist special interests seeking taxpayer dollars and focus on providing real tax relief for small businesses affected by inflation and rising costs.