City of Hudson income tax revenues rebounded in August as tax filings came in after the tax filing extension. Due to COVID-19, City income tax returns and payments for tax year 2019 with a due date of April 15, 2020 were extended to July 15, 2020. The filing extension for City tax returns matched the State and Federal extension.
Estimated payments for the first and second quarters of tax year 2020 were also extended to July 15, 2020. The extended filing and payment dates applied to individual taxpayer filings and payments as well as business net profit filings and payments.
As a result of the delayed filing, a significant portion of the City’s income tax revenue was deferred until after the July 15 deadline. City income tax revenue was $1.7 million or 10.4% below estimate through July 2020. With the August 2020 collections, the City is approximately $400,000 or 2.2% below estimate for the year. The City is projecting further payments of deferred income tax revenue over the next two months that may allow it to reach the City’s budgeted estimate for the year.