2020 Financial Condition Report

For Fiscal Year Ended March 31, 2020


2020 Financial Condition Report
For Fiscal Year Ended March 31, 2020

Reported State Tax Collections Increased in State Fiscal Year (SFY) 2019-20

  • In SFY 2019-20, reported New York State tax collections increased by 9.7 percent, reflecting factors including:
    • Taxpayer behavior in response to the federal Tax Cuts and Jobs Act (TCJA) that went into effect on January 1, 2018, which reduced receipts in SFY 2018-19;
    • Continuing economic growth through most of SFY 2019-20; and
    • Enhanced collection of sales taxes on Internet purchases.
  • The combined federal, State and local tax burden in New York State was $342 per $1,000 of personal income in fiscal year 2019.
  • At the local level, property tax revenues are the largest single tax source overall. Over 63 percent of all property taxes in New York are collected by school districts.



The State Relies Heavily on the Personal Income Tax as a Major Source of Revenue

  • Personal income tax:
    • Made up 65 percent of New York State’s tax collections in SFY 2019-20.
    • Has increased in collections by 14 percent from 2016 to 2020.
  • Only Oregon has a heavier reliance on the personal income tax than New York State. Nationwide, states rely more heavily on sales and user taxes.
  • The State’s top personal income tax rate of 8.82 percent is in effect until December 31, 2024. Changes in the State’s top tax rate can have significant impacts in the overall level of State tax revenue.
  • Collections for consumption and use taxes, New York State’s second largest tax revenue source, increased by 14.5 percent from 2016 to 2020.