New York state tax collections down $1.2 billion in first quarter of FY18

By Hilary Russ

NEW YORK (Reuters) - New York State's tax collections of $18.6 billion for the first quarter of its fiscal year were $1.2 billion, or 6.1 percent, lower than the same period last year, the state's top fiscal officer said on Tuesday.

Collections were also $315.7 million below projections, said State Comptroller Thomas DiNapoli.

"We're three months into New York's fiscal year and personal income tax collections are falling short of what was expected," DiNapoli said. "Taxpayer anticipation of federal tax changes has contributed to the decline."

The state begins its fiscal year on April 1. For the three months ended June 30, personal income tax receipts fell $1.5 billion, or 11.6 percent, and miscellaneous receipts were down by $640.8 million or 10.9 percent.

Partially offsetting the lower revenues were higher than anticipated business tax collections, which rose by $266.6 million or 16.5 percent, and federal receipts, up $1.2 billion or 9.2 percent.

Meanwhile the state spent $41.1 billion in the first quarter, about $3.1 billion or 8.3 percent more than for the same period last year.

Extra spending was primarily driven by increased Medicaid spending, mostly from federal sources, and education, DiNapoli said.

(Reporting by Hilary Russ; Editing by Daniel Bases and Tom Brown)