The Morning After Isn’t Always An Unpleasant Experience
In fact, state budget writers are rejoicing the morning after the June 15 filing deadline for quarterly tax payments.
Through the 15th, the state had received $1.1 billion in personal income tax payments — $723 million of it arriving June 14 and June 15 — and $516 million in bank and corporations tax payments.
Businesses face penalties if they don’t pay by the 15th so it’s not surprising the Franchise Tax Board reported receipt of $1.2 billion in bank and corporations taxes on June 16.
Traditionally, there’s also a similar but less dramatic uptick in personal income taxes the day after the 15th.
There was: Collections climbed from $485 million on June 15 to $642 million on June 16.
Because of changes made in last year’s budget, June, rather than April, has become the most significant revenue collection month of the current fiscal year, which ends June 30.
To pull more future income into the current and previous fiscal year, the 2009 budget front-loaded estimated tax payments so that 40 percent, rather than 25 percent, come due in June.
The GOP governor expects more than $5.5 billion in income tax receipts and $2.1 billion in bank and corporation tax payments in June.
Adding some $1.6 billion in income tax payments withheld from employee paychecks to the tax board’s collections to-date, totals $3.4 billion. Bank and corporation tax payments through June 16 are $1.7 billion.
Also good news for the state’s cash-starved general fund is that requests for refunds are a relatively low $126 million.
Lawmakers and Gov. Arnold Schwarzenegger are trying to close a $17.9 billion gap between revenues and sending commitments.
If June payments come in above estimates, the hole shrinks. If below, it deepens.
Filed under: Budget and Economy
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