New income tax projections show huge revenue windfall

The state will collect $1.4 billion more than initially estimated in gross income tax over the next two years, according to estimates from the office of Legislative Services, but the windfall will be partially offset by a drop in corporate tax collections.

The result will be an additional $914 million more in revenue than initially projected.  The updated revenue projections are scheduled to be presented to the Assembly Budget committee tomorrow.

According to projections, the state will collect an additional $633.9 million in income tax  in the current fiscal year, while bringing in $190 million less than projected in corporate taxes and $25 million less in other revenues.  The net haul will amount to $429 million over the governor’s initial projections.  The new projections put the total gross income tax projections at $10.7 billion.

In Fiscal Year 2012, OLS projects an additional $811 million in income taxes, while sales tax, corporate tax and other revenue will come in under the governor’s projections.  If the projections prove accurate the state will collect an additional $483.8 million over initial estimates.  The revised estimate puts the state’s total gross income tax projection at $11.3 billion, the highest level since Fiscal Year 2008, when income tax receipts crested $12.6 billion. New income tax projections show huge revenue windfall