DiNapoli Says Caution Needed Concerning State Tax Revenue
State Comptroller Thomas DiNapoli says weak tax revenues in May and June, coupled with increasing indicators of softening in the economy, indicate a need for heightened caution through the remainder of New York State’s 2012-13 fiscal year.
While overall tax collections are higher than projected through the first quarter of the year, a report released by DiNapoli found unexpected strength in collections was limited to April, when personal-income tax (PIT) collections surpassed expectations due to the settlement of prior tax year liabilities.
Combined General Fund PIT revenues for May and June were below projections by $244.5 million. The largest component of income-tax receipts, withholding from current wages and salaries, is projected to rise by 5 percent or $1.5 billion this year, but so far is virtually flat compared to SFY 2011-12.