New York collected $2.4 billion more in taxes than initially expected during the first six months of the fiscal year, state Comptroller Tom DiNapoli on Friday said.
Revenue from the personal income tax in particular is being closely watched amid growing concerns over the health of the economy as inflation continues to spike.
“Tax collections continued to run ahead of projections through September,” DiNapoli said. “However, there are economic uncertainties and risks that may impact revenue in the months ahead. Bolstering rainy day reserve funds on or ahead of the schedule proposed in the Enacted Budget Financial Plan should be a priority.”
All told, New York collected $33.2 billion between April 1 and Sept. 30 — running ahead of projections by $2.4 billion. The tax is New York's dominant source of revenue, meaning any dip could potentially affect funding for major items in the state budget like education and health care.
Tax revenue all together reached $58.4 billion, DiNapoli's office reported.
Gov. Kathy Hochul has pointed to efforts to insulate the budget from the potential negative affects of an economic downturn by putting more money into a rainy day fund to offset the loss of revenue.