Tom DiNapoli
New York State collected $2.9 billion more in tax income in 2022 than forecasted, but still made less than in 2021.
State Comptroller Tom DiNapoli released a report Monday that had tax collections for the last fiscal year totaling $111.7 billion. This is higher than what the Division of Budget forecasted but $9.5 billion lower than the 2021-22 budget year.
DiNapoli said the decline was primarily due to a decline in Personal Income Tax (PIT) receipts resulting from a variety of factors including: a decline in year-end bonuses in the financial services industry, claiming of credits related to the Pass-Through Entity Tax (PTET), the acceleration of the final phase-in of the middle-class tax rate cuts, and financial market volatility over the course of 2022.
Sales tax collections totaled $20.6 billion, exceeding the prior year total by $964 million or 4.9%. Business tax collections totaled $28.6 billion which was $891.8 million higher than the previous year, reflecting a 24.6% increase.
He said that state policy makers should ensure that the state budget committs additional resources to the state’s reserve funds to improve long-term financial stability.
DiNapoli said, “While tax collections have exceeded projections, they were considerably lower than last year. Although easing, inflation continues to present challenges to economic growth. State policy makers should ensure that the enacted budget for State Fiscal Year 2023-24 commits additional resources to the state’s reserve funds to improve long-term financial stability.”
The report is being released as a state budget for the current fiscal year remains unresolved.
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