(WNY News Now) – State tax receipts for the first six months of State Fiscal Year 2023-24 have exceeded expectations, reaching $51.5 billion, according to a report from New York State Comptroller Thomas P. DiNapoli.
New York, NY – The New York State Comptroller, Thomas P. DiNapoli, released the monthly State Cash Report today, revealing that state tax receipts for the first half of State Fiscal Year 2023-24 have surpassed initial estimates. The report indicates that the state’s economy exhibited resilience, driven by continued job gains, wage growth, and easing inflation. Nevertheless, challenges, including global unrest, labor strikes, and a potential federal government shutdown, could potentially hinder economic progress and exacerbate existing budget gaps.
Tax Receipts Surpass Expectations:
Through the first six months of the fiscal year, state tax receipts amounted to $51.5 billion, exceeding the July projections by $1.7 billion. This positive outcome can be attributed to favorable economic conditions that contributed to higher-than-expected tax collections.
Comparison to the Previous Year:
Despite the promising performance, it is important to note that tax receipts for this period were $6.9 billion lower than those for the same period in the previous fiscal year, State Fiscal Year 2022-23. The decline reflects, in part, this year’s financial market volatility, as well as differences in how personal income tax credits were claimed in the previous fiscal year.
Personal Income Tax Receipts:
Personal income tax receipts for the first half of State Fiscal Year 2023-24 reached $26 billion, falling just $49 million short of the Division of the Budget’s updated financial plan projections. However, these receipts were substantially lower, amounting to $7.2 billion less than the corresponding period in the previous fiscal year. This drop can be attributed to various factors, including financial market volatility and adjustments related to personal income tax credits claimed under the pass-through entity tax in State Fiscal Year 2022-23.
Consumption and Use Tax Collections:
Year-to-date consumption and use tax collections totaled $11 billion, surpassing the same period last year by 6.8%, or $698.4 million. This figure was also $105.3 million higher than DOB’s initial estimates. Sales tax receipts, constituting the largest share of these collections, increased by $563.1 million or 6%. Business taxes, including pass-through entity tax collections, amounted to $12.8 billion. Although these collections were $129.3 million lower than the previous fiscal year, they exceeded DOB projections by $1.6 billion.
General Fund Balance:
As of the end of September, the State’s General Fund closed with a balance of $48 billion, $3 billion higher than the Division of the Budget’s projections. This surplus can be attributed to both higher-than-expected tax collections and lower-than-anticipated spending.
New York State’s fiscal performance during the first half of State Fiscal Year 2023-24 has been better than projected, with tax receipts exceeding expectations. However, the state still faces a significant challenge due to the gap between this year’s tax receipts and those of the previous fiscal year. Comptroller DiNapoli has emphasized the potential economic risks, including global unrest and a federal government shutdown, which may further complicate the state’s budgetary situation in the coming months.
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