NYC gets $211 million more income tax rev through April

Reuters News
Posted: May 02, 2012 12:43 PM
NYC gets $211 million more income tax rev through April

By Joan Gralla

(Reuters) - New York City collected $6.79 billion from personal income tax in the first 10 months of its fiscal year ending in April, up about $211 million from the same period in 2011, though Wall Street bonuses were a bit weaker than expected, a source familiar with the matter said on Wednesday.

In April, one of the most important months for tax collections, the city took in around $1.052 billion from personal income taxes. That was only about $8 million less than expected, according to the source who was not authorized to speak to the media and declined to be named.

Mayor Michael Bloomberg, whose final term ends in December next year, is expected on Thursday to issue an update to the $68.7 billion 2013 budget plan presented in February before the state approved its budget.

One of the main issues financial analysts will be focusing on is how the mayor plans to spend the more than $500 million in restitution that computer contractor SAIC will pay the city.

Science Applications International Corp, a Fortune 500 company, is paying that sum to resolve its role in a fraudulent scheme that overcharged the city for a payroll time-keeping systems.

Bloomberg might face restrictions in using the SAIC payment because the payroll time-keeping system was a capital project and this implies he might have to use that money to pay down debt service, the source explained.

Another important issue will be whether the mayor plans to include the entire $1 billion from the July sale of taxi medallions in the new budget or spread that amount over the next two budgets, the source said.

Fiscal monitors have raised concerns about whether all the medallions can be sold as quickly as expected, and the sale has been challenged in court.

New York City starts its fiscal years on July 1.

(Reporting By Joan Gralla; Editing by Chizu Nomiyama and Richard Chang)