• April 14 2020

FY 2021 Tax Revenue Forecast – COVID-19 Pandemic

FY 2021 tax revenues are projected to fall by $4.4 billion or 14.1 percent from the January 2020 benchmark. Massive layoffs push the unemployment rate to nearly 18 percent in Q4 FY 2020, causing withholding taxes to decline by $1.2 billion in FY 2021. Shutting down economic activities and the loss of personal income will cost the state $1.5 billion in sales tax revenues largely from plummeting meals and motor vehicle sales. Non-withholding income taxes and corporate payments are expected to fall by $780 million and $760 million, respectively.