Personal income and business tax collections in New York were lower in June than they were last year, but the General Fund balance was higher last month than expected, according to a new report from state Comptroller Thomas DiNapoli. Part of the reason for the larger balance was a $250 million regulatory settlement.
Gross personal income-tax collections were 21.1 percent higher than a year ago, but an increase in tax refunds contributed to a $21.8 million drop in net receipts. This level of growth is not expected to continue, the comptroller said.
An increase in tax refunds contributed to a $21.8 million decline in net receipts, and business tax collections were $97.2 million less than in June 2012, primarily because of a drop in bank taxes, the report said.
Overall, the state’s finances are “stronger than we’ve seen in a while,” DiNapoli said.
“We are seeing positive signs on the revenue side of the ledger as sales tax collections continue to show growth,” he said in a statement. “The economy seems to be gaining momentum, but there is also uncertainty which demonstrates the ongoing need to be cautious.”
The $250 million settlement is from the Bank of Tokyo Mitsubishi UFJ. It was not included in the projected financial plan. DiNapoli said the regulatory settlement money should be used for non-recurring actions, such as reducing debt or paying for capital projects.
There was a decline in bond proceeds from $132.3 million to $84.6 million, partly offsetting the new revenue from the settlement, he said. Miscellaneous receipts were $305.2 million less than projected in capital projects funds through June 30.
Also in the report:
—Consumption taxes increased by $187.9 million through June—5.2 percent. They were $89.9 million higher than projected.
—Business tax collections so far this year were up $158.4 million—8.9 percent—but they were $21.2 million lower than projections.
—Federal funds received during the first quarter of the state fiscal year were up almost $2.3 billion—26.9 percent. That is partly due to an increase in payments for disaster assistance.
—Departmental operations increased 12.8 percent—$531.7 million—and were $27.5 million higher than projections for the quarter.