Time to Start Keeping an Eye on April Tax Collections
Now is the time to begin watching the state’s April tax collection tallies.
Traditionally, April has been the BIG month for income tax receipts. Go figure – Californians paying their annual nut and all that.
Budget-related legislation designed to bring the state more income sooner has made June almost as significant a month as April for collections but Gov. Jerry Brown’s budget expects $6.8 billion in state income tax receipts for the current month.
State Controller John Chiang says in the state fiscal year that ended June 30, 2010, 53 percent of the state’s revenues came from income tax and 16 percent of that total was collected in April.
According to the Franchise Tax Board, which issues a running tally, through April 19 the sate has pocketed nearly $3.8 billion in personal income tax payments and $1.2 billion in bank and corporation tax collections.
Of the $3.8 billion received, the state collected $2 billion of it in the last two days: April 18 – the deadline to pay taxes – and the 19th.
The final 11 days of the month determine whether the state meets its estimates. Sometimes delays in counting payment — or refunds — keep the final result unknown until the April 30 or the early part of May.
April tax collections have a direct impact on the state’s budget shortfall, which the Democratic governor says is $26.6 billion.
Higher than expected collections shrink the gap; lower than expected receipts increase it.
The tax board also shows that Californians have filled for almost $1.9 billion in refunds, pushing the state the same amount away from its monthly goal of a net $6.8 billion.
Filed under: Budget and Economy
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