N.Y. Tax Revenue Plummeted 68% in April, State Comptroller Says

New York state’s tax revenue plummeted 68.4% in April, as the coronavirus lockdowns and the extension of tax return filings to July 15 took a toll on state coffers.

The Empire State collected $3.7 billion, or $7.9 billion less than the previous April. Personal income-tax revenue fell more than $7 billion from last April, a drop that was primarily due to the delayed tax filing deadline.

“New York is facing economic devastation not seen since the Great Depression,” New York Comptroller Thomas DiNapoli said in a news release. “New York and other hard-hit states need the federal government to step up and provide assistance, or the state will have to take draconian actions to balance its budget.”

Government-ordered lockdowns to prevent the spread of the virus have cratered the U.S. economy, decimating state tax revenue. April sales and income tax receipts in 24 states declined sharply, Fitch Ratings said in a report this week. New Jersey reported a 60% drop in April revenue on May 13.

27,368 in U.S.Most new cases today

-17% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23

-1.​093 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23

-4.​8% Global GDP Tracker (annualized), April

The evaporation of revenue, combined with increased spending for health care and unemployment benefits, is upending state budgets. California Governor Gavin Newsom on Thursday proposed slashing spending about 9%, cutting state workers’ pay by 10% and tapping reserves to balance a budget in the fiscal year beginning July 1.

Lawmakers gave Governor Andrew Cuomo sweeping powers to close an estimated budget gap of $13.3 billion. Local governments could face as much as $8.2 billion in cuts, according to the state’s financial plan. To address cash shortfalls in May and June, the budget authorized as much as $8 billion in short-term borrowing.

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