New York State tax receipts reached $79.9 billion through the first three quarters of the 2024-25 fiscal year, surpassing projections by $1.2 billion and outpacing last year’s collections by $5.5 billion, according to a report released by State Comptroller Thomas P. DiNapoli.
“Strong financial markets and economic growth have propelled the state’s revenues through December,” DiNapoli said. However, he cautioned that market volatility, persistent inflation, and potential changes in federal tax policy could pose risks to future revenue streams.
Personal income tax (PIT) receipts totaled $40.7 billion, $719.3 million higher than estimates and $4.4 billion above last year’s levels. The increase reflects wage growth and financial market gains throughout the year.
Consumption and use taxes, including sales tax receipts, totaled $17 billion, up 2.1% from the previous year. However, these collections fell $53 million short of mid-year projections. Business taxes, including the pass-through entity tax (PTET), rose to $20.2 billion, exceeding last year’s totals by $1.3 billion and projections by $530.4 million.
State spending through December totaled $172.3 billion, a 5.3% increase from the prior year. This rise was driven primarily by higher public health and welfare costs outside Medicaid. Spending levels remained $1.2 billion below projections due to lower-than-expected expenditures on state capital projects.
The state’s General Fund ended December with a balance of $55.2 billion, $7.8 billion above projections and $4.2 billion higher than last year. Contributing factors included robust tax collections, reduced spending, and a $3.6 billion transfer from the federal State and Local Fiscal Recovery Fund under the American Rescue Plan Act.
DiNapoli emphasized the importance of monitoring economic trends and federal policies as the state approaches the close of the fiscal year.
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