The new memo from the non-partisan Legislative Fiscal Bureau (LFB) shows tax collections are above the agency’s January estimates by $1.6 billion. This continues a trend of an exceptionally healthy state financial picture that will allow the state to invest in K-12 education and other priorities in the 2023-25 state budget if policymakers decide to do so. From the memo:
“Collections were significantly higher than previously estimated for the individual income tax ($1,004.5 million) and the corporate income/franchise tax ($545.5 million). These two taxes comprise $1,550.0 million, or 95.6%, of the higher tax collections for 2021-22. Strength in individual and corporate estimated payments in April and June reflect higher than previously anticipated payments from businesses and investors over the first six months of 2022, including higher estimated payments from taxpayers that requested an extension to file their return for 2021. Fewer individual income tax refunds paid in April reflect higher than previously estimated personal income in 2021.”
