Confirming what state officials already know, the U.S. Census Bureau said this week that declines in collections of sales and gross receipts taxes and income taxes led to an overall drop in tax collections in the final quarter of Connecticut’s most recent fiscal year.
The state collected a total of $5 billion in taxes in April, May and June, down 18 percent from $6.13 billion in the prior-year quarter, the Census Bureau said. All states report the financial data to the federal agency.
The tax category that experienced the steepest year over year drop was selective sales and gross receipt taxes, with includes taxes on motor fuels, public utilities, amusements, tobacco and other products.
Collections in that category totaled $625 million, down more than 40 percent from $1.06 billion in the state’s 2014 fiscal fourth quarter.
The second-biggest driver of the decrease was income tax collections, which fell $270 million, or 7.8 percent, to $3.19 billion.
Income taxes were one of the reasons state deficit projections began to rise toward the end of fiscal year 2015, to a high of $162 million.
That projection shrank on a June surge of business tax collections.
Because revenue accruals related to fiscal year 2015 are still trickling in, the final deficit for that year isn’t yet set. But in August, Comtroller Kevin Lembo projected the figure at $70.9 million.
Any final remaining deficit for the year will be erased using rainy day reserves, officials have said.
