State Income Tax Collection Beats Projections By $900 Million

HARTFORD, CT — Gov. Dannel Malloy announced that personal income taxes collected in January and December will exceed projections by more than $900 million. A good portion of that comes from people paying income taxes before Jan. 1 to still reap federal tax benefits and from one-time payments from repatriation of foreign profits.

Newly-passed legislation diverts extra funds into a rainy day fund for future budgets. Only $10 million can be used to offset the current budget deficit for fiscal year 2018.

“This is very promising news for the state,” Malloy said. “And while I have been critical of many parts of the bipartisan budget, the legislature deserves praise for implementing the new volatility cap. Because of this new law, we know that any unexpected revenue will be set aside to meet future needs in a responsible way. We still need to take steps to close the deficit this year and to avoid one in the year that starts in July.

The total breakdown of early payments won't be known until final payments are received in April.

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