According to the Comptroller’s electronic message, the March distribution of the local income tax totals $61.4 million and is composed of the local shares of delinquent taxes and fiduciary payments received in the first half of fiscal year 2012. The March distribution also includes the third quarter distribution of the disparity grant, $29.9 million.
From the electronic message:
The delinquent distribution represents the local tax liability reported on late-filed and amended returns for the prior two years and net tax collections for earlier years. This distribution represents the local tax liability on returns for tax years 2009 and 2010 which were filed between July 1 and December 31, 2011, and net tax collections received during that period for tax years 2008 and prior. The delinquent distribution is $51.7 million, an increase of over 20%. This distribution accounts for relatively small numbers of returns, but is supported by ongoing compliance activities through the Comptroller’s data warehouse and roughly $3 million from the new requirement that tax liabilities be cleared with the Comptroller before a driver’s license or motor vehicle registration can be renewed.
Although, the fiduciary distribution may have increased by almost 60% to $9.6 million, it is still below 2010 levels.
The strong increase mirrors that of final payments for individual income taxes for tax year 2010 in April 2011 (29% growth); estimated payments were likely based on the prior year’s liability, but 2010 turned out to be stronger than reflected by the estimated payments, resulting in substantial growth in payments with returns.