According to a report today by New York State Comptroller Thomas DiNapoli, the state’s tax receipts in May were down $766.9 million or 19.7% from the amount of money that had been collected in May 2019. Total receipts for May 2020 were $2.694 billion. Disbursements totaled $6.744 billion, representing $4.050 billion more spent than was received.
“With an economy still suffocated by a global pandemic, the state”™s finances took another serious hit in the month of May,” DiNapoli said. “We are now clearly seeing the recession”™s impact on tax receipts. As we continue to slowly reopen the economy, it”™s critical that Washington act on our call for more federal aid.”
The Democratic-controlled House of Representatives has proposed $500 billion in aid for states and localities, but the Republican-controlled Senate has indicated it will not go along.
DiNapoli said that personal income tax withholding revenues were $291.8 million below what was received in May 2019, a decline of more than 9 percent reflecting both depressed economic activity and timing factors.
Spending for local assistance by the state through May totaled $17.9 billion, $1.4 billion less than projected in the state’s budget.
The report on overall state tax receipts followed by a few days DiNapoli’s sales tax report that showed sales tax revenue for local governments in May fell 32.3% compared with the same period last year. Sales tax collections in May totaled $918 million, or $437 million less than 2019. Westchester County’s tax tax receipts were down 19.5%, which was dramatic but not nearly as dramatic as the 31.9% decline experienced by New York City.
“We anticipated that sales tax revenues would continue to drop because of COVID-19 but the May sales tax figures show just how deep it is cutting into municipal finances,” DiNapoli said. “Sales tax revenues are vital funding not only for the state but for municipalities like counties and cities as well.”
The May report on state revenue losses followed April’s report showing a 68.4% loss compared with what was received by the state in April 2019. The state’s total tax receipts fell by $7.9 billion for the month April 2020, coming in at $3.7 billion.
When those results were released, DiNapoli’s commented, “New York is facing economic devastation not seen since the Great Depression.”
THANKS CUOMO
Why does Cuomo have his head buried in the sand on the issue?
As his hope of a Fed bailout grow less and less likely, why doesn’t he make cuts to the budget? The longer Cuomo waits the worse it gets.
Raising taxes might be possible but then again 1% of NYs population pays 40% of the income tax and we need them to stay and not move and then pay NO NY taxes.