September 17, 2020
August revenue collections from the state’s three largest taxes—the personal income tax, corporation tax, and sales tax—were ahead of budget projections by $1.7 billion (24 percent). Personal income tax withholding and sales tax receipts continue to be key drivers of the better-than-expected collections. As we discussed last month, strong performance in withholding appears to be tied to relatively stable employment among high-wage earners. Better-than-expected sales tax collections are consistent with the rapid rebound in consumer spending in recent months.