Page 3 the Division of the Budget’s (DOB) projection that full-year collections for current year estimated payments would decline 3.2 percent from the previous year. Thus, receipts in this category may end the year several hundred million dollars higher than currently expected.
Figure 2 Personal Income Tax Collections for Withholding, Current Year and Prior Year Estimated Payments for SFY 2013-14
(in millions of dollars)
Sources: Office of the State Comptroller; Division of the Budget.
Withholding collections are received directly from paychecks and are not as volatile as estimated payments. Through the first three quarters, withholding collections have increased 3.0 percent, lower than the 3.5 percent projected for the year. PIT collections, as reported in the State’s financial statements and the Financial Plan, are made up of gross collections less refunds. PIT refunds totaled $5.7 billion through December 31, 2013 representing an increase of 15.9 percent over the same period last year. DOB projects that refunds will total almost $7.5 billion by the end of the State fiscal year, representing growth of 7.9 percent from SFY 2012-13.
Consumption and Use Taxes
The Mid-Year Update to the SFY 2013-14 Enacted Budget Financial Plan projects All Funds consumption and use tax collections will increase 3.4 percent, or $501 million, from SFY 2012-13 levels. As shown in Figure 1, the State has already realized nearly all of this projected growth, with three months left in the fiscal year.
129 16 1,965 646 286 1,985 1,108 (283)1,978
-$500$0$500$1,000$1,500$2,000$2,500WithholdingCurrent Year EstimatedPrior Year Estimated
April GrowthYear to Date GrowthProjected Year-End Growth