DiNapoli: N.Y. 1Q Tax Collections Beat Projections, But Weakly

New York’s tax collections are higher than projected through the first quarter of the year, but revenues were unpredictable, said state Comptroller Thomas DiNapoli.

A report, released by DiNapoli on Wednesday, found that the strength in collections was limited to April, when personal income-tax collections surpassed expectations due to the settlement of previous tax-year liabilities.

DiNapoli advised budgetary caution for the remainder of New York’s fiscal year as tax revenues in May and June weakened and indicators of softening in the economy increased.

“As has happened repeatedly in recent years, unexpected changes in the economy are creating a drag on forecasted revenues. The state must remain vigilant about managing our budget given the challenge of an uncertain economy,” the comptroller said.

General fund tax collections were $11.4 billion, or $83.1 million higher than projected in the enacted budget financial plan in the first quarter, but $347.7 million lower than for the same period last year.

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% or $1.5 billion this year, but so far is virtually flat compared to last year, DiNapoli said.

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