Some Major Revenue Action Necessary in April’s Final Innings
Dozens of bags full of six figure tax returns need to be found for the state to meet its revenue target for April.
Unlike the past two years when the Monday following April 15 yielded returns of $1.5 billion and $1.6 billion, this year’s Monday April 19 brought in just $699 million.
And that was the week’s high point.
Each day following, income tax collections fell. Friday April 23’s yield was $287 million. Bank and corporations taxes receipts were $16 million.
Month-to-date income tax collections are $4.5 billion. Bank and corporations tax payments logged is $1.2 billion.
The budget proposal presented by Gov. Arnold Schwarzenegger in January is premised on the state receiving $10.5 billion in income tax revenue in April and $1.9 billion in bank and corporations tax revenue.
If revenues don’t reach those targets, the state’s budget shortfall will worsen by a like amount.
The GOP governor’s revenue estimates also include quarterly withholding payments for the 2010 tax year which are sent to the Employment Development Department, rather than the tax board.
Through April 22, the department reported $2.5 billion in withholding payments, which means with seven days left in the month, income tax collections are roughly $3.5 billion short of the governor’s target.
The month’s final work week begins April 26.
Filed under: Budget and Economy
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