Nearly a $1.2 Billion Daily Bump in State’s April Income Tax Receipts
With 10 days left in the month, the state moved closer to its goal of collecting $6.8 billion in April income tax payments.
For April 20, the Franchise Tax Board reported collecting $1,196,685 in income tax payments. Since Monday April 18, the state has logged nearly $3.3 billion in tax receipts.
April tax collections have a direct impact on the state’s budget shortfall, which Gov. Jerry Brown says is $26.6 billion. Higher than expected collections shrink the gap; lower than expected receipts increase it.
Traditionally, April has been the most significant month for income tax receipts. Budget-related legislation designed to sweep more money into sstate coffers sooner has made June almost as important a month for collections.
Brown’s budget expects the tax board to receive $6.8 billion in income tax receipts for the current month. Through the 20th, the tally stands at just over $5 million.
Last year, through April 20, the state collected $3.6 billion but ended the month with $6.2 billion.
Brown’s budgetwriters also expect there to be requests for refunds of nearly $2.5 billion. So far, there are requests for just over $2 billion.
Another $2.8 billion is projected to be collected by the Employment Development Department through the witholding payments employers remove from employee paychecks.
The California Taxpayers Association notes that on State Controller John Chiang’s daily tracking of income tax receipts, collections for the fiscal year to date — July 1, 2010 through April 19 — are almost $5 billion higher than during the same period in the previous fiscal year, a 15.1 percent increase over the 2009 to 2010 fiscal year.
Chiang says during the previous fiscal year 53 percent of the state’s revenues came from income taxes and 16 percent of that total was collected in April.
Businesses — as well as individuals — also make quarterly estimated tax payments in April. Brown’s Department of Finance expects $1.6 billion to be paid in April in bank and corporations taxes. Through April 20, under $1.3 billion has been received.
Filed under: Budget and Economy
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