Illinois income tax revenue up sharply
April 18, 2012 11:44AM
Updated: May 21, 2012 8:35AM
Illinois income tax collections jumped 31.9 percent in fiscal 2011 — the second-highest jump in the nation — thanks largely to increasing the tax from 3 percent to 5 percent, according to the Census Bureau.
Only North Dakota saw a bigger jump at 42.6 percent.
Sales tax and corporate income tax collections are also up, said Sue Hofer, spokeswoman for the Illinois Department of Revenue.
The numbers released this week cover the fiscal year that ended June 30, so only half the income tax increase is reflected. It was imposed as of Jan. 1, 2011.
Hofer said it’s not just the higher rate that’s causing greater income tax revenue.
“Illinois added more than 30,000 jobs last year,” she said. “More people are working. You don’t pay taxes if you don’t work.”
Income tax revenue for the current fiscal year is $10.3 billion through February, $3.8 billion ahead of last year, Hofer said.