By Forum Staff
State tax receipts totaled $33.2 billion through the first quarter of State Fiscal Year 2025-26, $580.5 million higher than the most recent Division of the Budget estimates. State tax collections were also $3.3 billion higher than the first quarter of 2024, according to the monthly State Cash Report recently released by State Comptroller Tom DiNapoli.
Personal income tax receipts totaled $19.2 billion and were $66.3 million above DOB’s financial plan projections through the first quarter. However, PIT receipts were nearly $3 billion higher than the same period in SFY 2024-25, reflecting, in part, the 24.9-percent increase in collections from the settlement of the 2024 tax year.
Year-to-date consumption and use tax collections totaled $5.8 billion which was 3.3 percent or $182.5 million higher than the same period last year, and $2.5 million higher than anticipated by DOB. Sales tax receipts, the largest share of these taxes, increased by $34.1 million, or 1.7 percent in the month of June. Business taxes, which included collections from the Pass-through Entity Tax, totaled $7.5 billion, $176 million higher than through June in the prior fiscal year, and $558.2 million higher than DOB’s financial plan projections.
Photo Courtesy of Comptroller DiNapoli
“Slowing employment and economic growth may present a challenge in the coming months,” Comptroller DiNapoli said.
All Funds spending through June totaled $60.9 billion, which was $5.9 billion, or 10.8 percent, higher than last year for the same period, primarily due to higher Medicaid costs. All Funds spending through June was $1.7 billion lower than DOB projected, primarily due to lower spending on local assistance grants. State Operating Funds spending totaled $33.9 billion, $3.2 billion, or 10.3 percent higher than last year and $1.4 billion lower than DOB projected.
The State’s General Fund ended June with a balance of $53.6 billion, $2.7 billion higher than DOB projected and $4 billion higher than last year, primarily due to higher than anticipated tax collections and lower than anticipated spending.
“Higher tax collections for the State primarily reflect strong personal income tax collections on 2024 income,” DiNapoli said. “Slowing employment and economic growth may present a challenge in the coming months, along with the potential impact of tariffs and federal policy changes that have yet to be fully realized.”
