Revenues are affected by economic changes and changes in federal and State policies. Tax base is a measure of the State’s ability to generate revenue. A decreasing tax base may force spending reductions, increased taxes, or both. Receipts are revenues that have been recorded on a cash basis.

See Appendix 3 for a breakdown of State receipts by major source for the past five years.

Total State Receipts Have Increased Over the Past Five Years

• From 2012 to 2016: 
  • total receipts increased 15.2 percent.
  • tax receipts increased 16.1 percent.
  • federal receipts increased 15.1 percent. Funding is again increasing with: 
    • disaster assistance for Superstorm Sandy and Hurricane Irene; and
    • Medicaid funding under the Affordable Care Act.

Personal Income Tax and Consumer Tax Receipts Have Increased Over the Past Five Years

• Personal income tax and consumer (consumption and use) taxes:
  • accounted for 41.0 percent of 2016 receipts; and 
  • have increased 17.7 percent since 2012.
• In 2016, personal income tax receipts—the State’s largest tax revenue source—increased 7.7 percent over the previous year.