New York’s tax collections through October continued to fall below expectations, according to an October cash report released by state Comptroller Thomas DiNapoli.
Collections totaled $35.9 billion through October, falling $170.8 million below July estimates and $259.8 million below initial estimates. “Tax revenue estimates should be revised downward,” DiNapoli said. “Adjustments should also factor in the additional costs from Hurricane Sandy. As recovery efforts continue, realistic projections are critically important for the state to effectively manage its available resources.”
The first quarter update to the financial plan released in July projected tax growth of 3.1% for the year. However, all funds tax collections through October rose just 1.5% from the same period last year.
To meet projections, tax collections must increase 5.1% in the last five months of the fiscal year, DiNapoli said.