Extended tax deadlines make state budgets tricky

By Tripp Baltz

BLOOMBERG TAX

Pushing the tax payment deadline back to July 15 means states won’t get revenue they were counting on in the current fiscal year which, for most, ends June 30.

The financial squeeze is especially tight because nearly every state has a balanced budget requirement, and only 11 states are permitted to carry over a deficit into the next fiscal year. That leaves state lawmakers and economic officials forced to tap into rainy day funds and creatively patch together spending plans in economies already devastated by fallout from the coronavirus pandemic.

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