- June data reflect stock-market turmoil: New York comptroller
- Estimated tax payments tied to capital-gains realizations
New York City’s estimated personal income-tax payments in June declined to the lowest level since 2017, marking the first sign that the stock-market tumble is hitting the revenue of the financial capital, according to City Comptroller Brad Lander.
June’s estimated payments, which are closely tied to capital-gains realizations, were 31% lower than the same period last year, data released Monday by the fiscal watchdog showed. Last month, US stocks entered a bear market for the fourth time in two decades, although the S&P 500 Index has since pared some of the losses and is now down 19% since the start of the year.
Although New York City’s economy has diversified in recent years, the high-paying securities industry still accounts for a disproportionate share of income-tax collections. This sector has benefited from the lopsided recovery from the pandemic. Indeed, overall personal income-tax collections are 5.1% higher year-over-year, primarily due to taxes withheld from monthly wage earners, Lander reported.
Bloomberg Markets
By Romy Varghese and Donna Borak
July 12, 2022