How to Read the Monthly Report of Net Collections: Part 1

July 14, 2015

The Indiana Department of Revenue is responsible for collecting more than $17 billion annually. Each month, the department publishes a report of this revenue called the Monthly Report of Net Collections. This report contains a lot of information, and we are here to help you decipher the details.

The monthly report is a summary of taxes collected and refunds issued by the department in a given month. The department also collects local taxes on behalf of city and county governments, and these collections have their own section in the report.

Not all taxes and fees are collected by the department. An example would be unemployment taxes, which are collected by the department of workforce development. Taxes and fees collected by other agencies are not included in the report.

The report is broken up into sections. The first section, the Tax Receipts Collected Section, shows how much revenue was collected by the department for each tax type. The remaining sections show how the funds were distributed.

Today, we’ll cover the Tax Receipts Collected Section. We’ll cover the distribution sections in the next blog. You can visit http://www.in.gov/dor/3657.htm to find a monthly report and follow along as we walk through the information.

Tax Receipts Collected Section

This two-page section shows the various tax types collected by the department and how much of each tax type was collected during the month. This section also includes refunds that were issued and the amount left over, or the net collection. It is important to note that all figures in this section are in the thousands, so $17 on the report is really $17,000 in collections.

If you want to compare this month’s collections to prior collections, the first page of this section makes it easy. The information from the prior month and the information from the same month in the prior year are included in the report. The shaded columns show you the change and percentage change compared to the prior month and the same month in the prior year. The bold figures represent the totals by tax type categories and the bottom row reflects the total tax receipts collected.

The second page of this section shows the year to date (YTD) amounts for each tax type, instead of the month’s collection amounts. There are two YTD amounts, calendar year (January 1 through December 31) and fiscal year (July 1 through June 30). For comparison, the YTD amounts for the same month in the prior year are provided.

This section can be useful if you want to find collection information for specific tax types. For example, if you want to know how much sales tax was collected during May 2015, check the first column on page one of this section. More than $582 million was collected, which is 1.1 percent more than the amount collected in April 2015, but 2.9 percent less than what was collected during May 2014.

That’s it for today’s blog. The next blog in the series, “How to Read the Monthly Report of Net Collections: Part 2” will cover the other sections of the Monthly Report of Net Collections. These sections detail how the funds are distributed.