Comptroller Releases Final Local Income Taxes Reconciling Distribution

The Comptroller’s Office has released its data on the January distribution of local income tax to counties.

From the Revenue Administration Division’s email:

The January distribution of local income tax revenues includes the final reconciling distribution for tax year 2016 and the interest/penalty distribution for the first half of fiscal year 2018.  The January distribution to the counties totals $57.8 million, a 12.1% decrease from last year.  This distribution will be made on January 31, 2018.

Reconciling distributions can be volatile, in part because they typically involve higher income households.  Additionally, while the number of tax returns processed through the first half of the fiscal year was essentially equal to the number of returns processed by this point last year, 2.9 million (Table 3), more of the returns were processed earlier in the year compared to the same time period in 2016.

This distribution is the last tax year 2016 distribution; any remaining revenue from tax year 2016 activity will be distributed through the delinquent distributions and, ultimately, the unallocated distribution for tax year 2016. Year to date, cumulative local income tax distributions total $4.6 billion (Table 2), a 0.6% increase over the same time period last year.