June Income Tax Receipts Looking Even Better
With five collection days left in the month, June income tax collections reported by the Franchise Tax Board are running more than $350 million over projections through June 25.
The board reports receiving nearly $4.1 billion in income tax payments and nearly $200 million in refund requests.
Gov. Jerry Brown’s revised budget, unveiled in May, expected $3.75 billion to be collected by the board in June, less $291 million in refunds.
As Democratic lawmakers prepare to pass the final bills to implement the budget for the fiscal year that begins July 1, the additional cash is welcome because it means less spending cuts are needed to balance the spending blueprint.
June has become the second largest revenue collection month for the state – almost as big as April.
That’s because the September estimated tax payment was eliminated in 2009 and the second quarter – payable June 15 – was bumped up from 30 percent to 40 percent of what’s expected to be owed for taxes next April.
Overall, Brown’s budget expects a total of $6.9 billion in income tax payments this June, less the $291 million in refunds.
Of the net $6.6 billion, $3.1 billion is the money employers withhold from employee paychecks. That’s sent to the Employment Development Department.
The remaining $3.5 billion in the budget estimate is what the tax board collects.
June is also a big month for bank and corporations collections.
Through June 22, corporate tax collections are running nearly $100 million ahead of estimates.
The governor’s Department of Finance expects $2 billion in corporate taxes less $67 million in refunds for a net of roughly $1.9 billion.
So far, nearly $2.1 billion in taxes have been paid and $49 million in refund requests filed.
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