It’s a happy early Tax Day for the New York state government — sort of.
A report released Monday by state Comptroller Tom DiNapoli’s office found New York took in $2.9 billion more than initially expected in tax revenue for the fiscal year that ended April 1.
That’s the good news for the state’s coffers. The more complicated picture: New York received $9.5 billion less than the previous year, according to the report.
All told, New York received $111.7 billion in tax collections, much of it from the personal income tax, the main driver of New York’s revenue. Still, revenue from personal income taxes has declined in the last year.
The report is being released as a state budget for the current fiscal year ending April 1, 2024 remains unresolved. Democratic lawmakers are calling for increased taxes on people who earn more than $5 million a year, a move that Gov. Kathy Hochul has resisted.
The revised figures also come as economists are bracing for a potential recession amid sustained inflationary pressures.
“The financial position of the state remains on a solid footing, for now,” DiNapoli said. “While tax collections have exceeded projections, they were considerably lower than last year. Although easing, inflation continues to present challenges to economic growth. State policymakers should ensure that the enacted budget for State Fiscal Year 2023-24 commits additional resources to the state’s reserve funds to improve long-term financial stability.”
The numbers bare out the complications of relying heavily on personal income tax revenue to balance the state’s finances. Collections from the personal income tax reached $58.8 billion — nearly $12 billion less than the previous year.
Sales tax revenue and other consumption and use taxes reached $20.6 billion, growing by $964 million amid higher prices. Business taxes reached $28.6 billion in revenue, or $892 million more than last year.
Source: spectrumlocalnews
