DES MOINES — Eric Richardson, senior fiscal analyst at the Iowa Legislative Services Agency, said in the November 2025 General Fund monthly revenue memo that through Dec. 3 net General Fund receipts decreased $221,000,000, or 7.3%, for the fiscal year.

"Through December 3 and on a fiscal year basis, net receipts decreased $221,000,000 or 7.3%," Richardson said. He attributed part of the decline to a one-time change in tax law: "individual income taxes decreased by $249,000,000 or 16.5% as the individual income tax rate decreased to a flat 3.8% in tax year 2025."

Richardson noted mixed performance across major tax sources. Sales and use tax collections were up $101,000,000 (8.9%), providing some offset, while corporate income tax receipts contracted sharply, down $75,000,000 (37.3%) through the same period. "National trade factors are placing stress on Iowa's agricultural and manufacturing economies, hampering corporate income tax growth," he said, and added that corporate estimated payments have fallen "due to lower than expected tax liabilities from the federal 1 Big Beautiful Bill Act."

Franchise tax receipts fell 21.9% in FY 2026 after strong growth the prior year, Richardson said. Other taxes increased by $29,000,000 (175.9%), driven primarily by a $17,000,000 gain in the composite tax.

Breaking net receipts into components, Richardson reported gross revenues through Dec. 3 were down 8.7%, but a 28.2% decrease in regular tax refunds and a 0.9% increase in sales tax transfers to the school infrastructure fund made net growth less negative. He cautioned that refunds are likely to accelerate during tax season because of the state individual income tax cut and policies enacted in the OVA, which will reduce FY 2026 net General Fund revenue.

Richardson compared the current year-to-date results to the October 2025 Revenue Estimating Conference projection, noting the conference had projected a negative 9% growth rate for the fiscal year. He said the ARGC projected a FY 2026 decrease that reflects tax reductions effective Jan. 1, 2025 — changes to individual income, inheritance, insurance premium and franchise taxes — and that the state’s conformity to the Internal Revenue Code will also reduce revenue.

The Revenue Estimating Conference is scheduled to meet on Dec. 11, 2025, to evaluate and revise projections for fiscal years 2026 and 2027. Richardson closed the memo by thanking viewers and noting the next monthly video memo will appear in early January.

Reporting note: This article is based on a monthly video memo delivered by Eric Richardson of the Iowa Legislative Services Agency; all quotes and figures are taken from that memo.