California's three major taxes beating budget expectations
September 12, 2017
• Personal income taxes were $212.9 million more than anticipated
• Corporation tax receipts were $70 million above budget
California state government collected $8.90 billion in August, exceeding projections in the state budget by $343.7 million, or 4.0 percent, according to a report Tuesday from state Controller Betty Yee.
After July revenues exceeded expectations, the positive August numbers put total fiscal year-to-date revenues at $14.99 billion, $532.5 million higher than projections in the state budget enacted in June. Revenues for the first two months of the fiscal year were $1.01 billion higher than they were one year ago.
Led by personal income taxes (PIT), each of the “big three” revenue sources beat expectations. PIT receipts of $5.22 billion in August were $135.7 million higher than 2017-18 Budget Act estimates. For the current fiscal year, California collected total PIT receipts of $9.96 billion, $212.9 million more than anticipated in the 2017-18 Budget Act.
August corporation tax receipts of $95.2 million were $70.0 million – or a whopping 277.8 percent – more than anticipated in the budget. Fiscal year-to-date corporation tax receipts of $458.7 million are $88.9 million above 2017-18 Budget Act projections.
Retail sales and use tax receipts of $3.12 billion for August were $67.3 million, or 2.2 percent, above budget estimates. For the fiscal year to date, sales tax receipts of $4.02 billion are $151.9 million higher than expected.
Outstanding loans of $8.66 billion in August were $1.26 billion less than budget estimates. This loan balance consists of borrowing from the state’s internal special funds. Available borrowable resources in August exceeded projections by $3.82 billion. Compared to 2017-18 Budget Act forecasts, total disbursements were $890.7 million lower than expected.