New York state collected less in taxes in its 2011-2012 fiscal year than expected, even after midyear adjustments lowered collection estimates by nearly half a billion dollars.
The state collected $233 million less than projected, according to a report New York Comptroller Thomas DiNapoli released Monday. The Division of the Budget had predicted tax revenue of $64.5 billion.
However, that prediction was below initial estimates. The Division of the Budget cut its collection estimates by a total of $444 million in two updates in November and January. Tax receipts were $677 million below initial estimates.
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“The economy has been recovering, but at a much slower pace than expected,” DiNapoli said in a news release. “Last fiscal year, the state experienced a great deal of volatility, and state tax collections fell short of projections in seven of the last 12 months.”
The state did collect more tax than it did during the 2010-2011 fiscal year. Collections in 2011-2012 went up $2.9 billion, or 4.8 percent. But New York failed to collect enough in personal, business, or consumption taxes to match its estimates.
Personal income tax collections rose 5.6 percent to $38.8 billion. That was lower than state projections of a 6.4-percent increase.
Business tax collections jumped 8.2 percent to $7.8 billion. The Division of the Budget had estimated a larger spike in business tax receipts of 12.3 percent.
Revenue from consumption and use taxes — such as sales tax — rose 2.6 percent to $14.6 billion, also lower than projections. The state predicted 3.3 percent growth.
Consumption and use taxes were higher in the first eight months of 2011-2012 than in the same months of the previous year, according to the report. They declined in comparison to the previous year starting in December 2011, it said.
State spending increased 0.6 percent to $133.5 billion. That’s above the 0.8 percent decline the state predicted, largely due to the timing of Medicaid payments, according to the report.
Contact Seltzer at rseltzer@cnybj.com
