Tax Receipts Lag at a Time of the Month They Should Climb

While the Franchise Tax Board insists its still to early to assess how tax collections will fare by the end of the month, April 20 was another disappointing day.

Personal income tax receipts for the day were $468 million, down from $699 million on April 19. Last year, combined totals for the first two days after the weekend following April 15 were  $1.7 billion.

Bank and corporations tax receipts received were $15 million, down from $68 million the day before. Businesses face stiff penalties for not filing their taxes by April 15, so some drop-off after that date is expected.

Nevertheless, last year, for the first two days after the weekend following April 15, $200 million was received.

With 10 days left in the month, collections remain well short of the estimates Gov. Arnold Schwarzenegger used to create his spending plan for the fiscal year that begins July 1.

The GOP governor expected April to yield $10.48 billion in income taxes and $1.9 billion in bank and corporations taxes.

To date, $3.6 billion in income tax and $1.1. billion in corporate taxes has been logged.


Filed under: Budget and Economy

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