State Finance Secretary Preston Doerflinger reported Tuesday morning that the state recorded no corporate income tax collections during May, exacerbating a year-long shortfall that caught state officials by surprise.
Doerflinger said May was the third month during the 2014 fiscal year in which corporate income tax refunds exceeded collections, leaving the state with a net balance of zero for the month.
Corporate income tax collections apportioned to the state’s general revenue fund for the first 11 months of the fiscal year totaled $246.4 million, far below the original $482 million estimate used to determine the 2014 appropriated budget.
May collections for the general revenue fund totaled $449.5 million, which is short of projections by $25.3 million. With one month remaining in the fiscal year, the general revenue fund is $251.8 million below the official estimate for 2014.
“Other states are reporting similar corporate declines and many of our colleagues in those states share cautious optimism that at least part of this is temporary,” Doerflinger said. “States are seeing inflated effects of federal tax law changes that should even out over time.”