A Happy Day at the Franchise Tax Board
April 18 was a happy day for state tax collectors as the Franchise Tax Board received $1.6 billion in payments – more than doubling the previous day’s $751 million.
Payment volume should continue to be high as the state sifts through the returns filed on April 17th, the payment deadline.
To date in April, the Franchise Tax Board reports collecting almost $3.9 billion — $4.5 billion less than Gov. Jerry Brown’s budget predicts the agency will receive through April 30.
April is by far the largest month of the year for income tax receipts.
The Democratic governor expects a net total of $9.4 billion in both payments to the tax board and withholding from employee paychecks, which is sent by employers to the Employment Development Department.
In addition to what the tax board receives, Brown expects the employment department to pocket a little over $3.2 billion.
That $3.2 billion plus the board’s $8.4 billion adds up to gross receipts of approximately $11.6 billion.
Brown’s budget writers also expect there to be requests for refunds of almost $2.1 billion. So far, there are requests for more than $1.8 billion. Taxpayers getting money back tend to file earlier.
Total receipts less refunds equal the month’s net total.
State Controller John Chiang keeps a daily tally of net income tax collections for April. It shows total collections less refund requests to be just under $2.7 billion through April 17.
April is also the third largest month for bank and corporation tax collections. The budget estimates just over $1.5 billion will be paid.
Through April 18, $1 billion has been received.
Filed under: Budget and Economy
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