New York State collected$ 3 billion more tax revenue in the last fiscal year than predicted by Governor Thomas DiNapoli two months ago, boosted by strong personal income tax receipts, State Comptroller Andrew Cuomo said.
However, collections for the 31 March 2017 budget year were$ 82.4 billion, which is$ 513.3 million lower than the previous year, as social distancing and lockdowns due to coronavirus depressed sales tax revenue.
The state's financial position was significantly better than predicted, DiNapoli said in a statement Thursday. We face a long road to recovery, and the state's economy is still facing serious challenges both in the short-term and long-term.
From New Jersey to California, the federal government avoided dire predictions of fiscal collapse as the government pumped$ 3 trillion into the economy last year through expanded unemployment benefits, small business loans and direct payments to individuals and families. The surging American stock market and Wall Street's most profitable year since 2009 have boosted capital gains tax revenue in New York, New Jersey and Connecticut.
And the federal money will continue to flow; New York State and its localities are expected to get nearly$ 24 billion from the$ 1.9 trillion stimulus package by President Joe Biden. The Empire State proposed a$ 212 billion budget for the fiscal year beginning April 1, almost$ 20 billion more than Cuomo said in his executive budget. Despite the federal bigss, New York raised the taxes on the richest residents by$ 2.8 billion. The state policymakers must ensure that spending commitments are in line with recurring revenue sources, said DiNapoli.
Personal income tax collections totaled$ 55 billion last year, exceeding the previous year by$ 1.3 billion.
Consumption and use taxes, which include receipts from sales tax, totaled$ 16.1 billion, a 10.6% decline from the prior year. For more articles like this, please visit bloomberg.com at www.businesstax.com. Subscribe now and stay ahead with the best business news source.