Recent Data Shows 870 Million Drop in State Tax Collection
Recent tax data shows an 870 million drop in state tax collection last month due mostly to the COVID 19 pandemic. The nonpartisan Legislative Fiscal Bureau found state tax collections from July 2019 through last month were 313 million lower than the same 10 months period in years previous. The LFB reports the reduction in April can be based on the extension of income tax and franchise tax filing deadlines from April to July but is also due to pandemic and the ability of the state to collect taxes. Gov Evers’ administration said last week that all state executive agencies will need to make a 5% reduction in taxpayer funder operating expenses by June 30th so they can begin to address anticipated economic shortfalls, Gov Evers estimated the cut in expenses could save the state roughly 70 million dollars. According to the LFB it’s too early to know the full economic impact of the pandemic and the likelihood of a surplus which was projected to be about 452 million through June 2021 has all but been ruled out.