Illinois’ fiscal year 2025 (FY25) sales-tax collection lags the state’s sales-tax revenue for the same period last year, according to figures released by the Illinois Commission on Government Forecasting and Accountability (CGFA).
First quarter FY25 sales tax revenues came in at $962 million for the three months of July, August, and September of this year, down $121 million or 4.0% from the same period in 2024. Year over year, Illinois sales tax collections fell $45 million or 4.5% in September.
In August, a plurality of small-business respondents to NFIB’s Small Business Economic Trends (SBET) survey reported declining sales and earnings.
“Slowing sales-tax collections mirror the declining sales that many NFIB members have reported,” said Noah Finley, Illinois State Director. “As economic conditions tighten, policymakers need to take action to make the federal Small Business Deduction permanent. The last thing Main Street businesses need at present is a massive tax hike.”
Overall, total general funds revenues are down $243 million so far in FY25, largely attributable to a later annual funds transfer from the Income Tax Refund Fund. Personal income tax receipts are up 11%, and corporate income tax receipts are down 10.2% for the fiscal year.
