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Conn. Sees Tax Revenue Drop From COVID-19, Comptroller Says

By James Nani · April 1, 2020, 5:27 PM EDT

Connecticut projects a $130 million drop in withholding taxes and a $30 million reduction in sales and use taxes because of measures to stem the COVID-19 pandemic, according to a report issued Wednesday by the state comptroller.

Connecticut Comptroller Kevin Lembo said the state will likely see a $170 million deficit in the current fiscal year. The comptroller's estimate is the first monthly budget and economic outlook since the COVID-19 pandemic first emerged in Connecticut. 

Lembo said his office has seen a drop-off in withholding receipts caused by layoffs and furloughs resulting from nonessential business closures and a reduction in the sales and use tax estimates also due to shelter-at-home directives.

Estimated and final payments from the state's pass-through entity tax are also likely to decline because of recent losses in the stock market, the report said, but because filing and payment deadlines have been pushed back, the full impact on fiscal year 2020 revenues won't be known for several months. 

--Editing by Vincent Sherry. 

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