December Revenue Collections — Did They Hit the Mark?
State budget writers last June predicted California would take in more than $5.7 billion in income tax receipts and $1.4 billion in corporate taxes during the month of December.
That prediction came in a state budget enacted June 30, which the Brown administration and the Legislative Analyst say is already $2.2 billion to $3.7 billion short of revenue estimates, respectively.
December is one of the state’s larger collection months. Quarterly payments of estimated taxes are due for both businesses and individual taxpayers.
April and June are the most significant revenue months.
Through December 22, the Franchise Tax Board reported collecting $607 million in income tax payments.
During the final days of the month – as taxpayers sought to make payments in the 2011 tax year – income tax collections climbed to nearly $1.3 billion.
Another $456 million logged by the Franchise Tax Board January 3, following a three-day holiday weekend, was also likely paid in 2011.
There are requests for income tax refunds of $108 million.
Bank and corporation tax payments for December totaled $1.5 billion with $221 million sought in refunds.
While the income tax collections by the tax board are well lower than the total projected for the month, a large chunk of income taxes are paid to the Employment Development Department in the form of withholding – the amount employers subtract from the paychecks of workers to cover their tax obligations.
The budget revenue estimates don’t break down how much revenue comes from estimated payments and how much from withholding.
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