November 13, 2020
October revenue collections from the state’s three largest taxes—the personal income tax, corporation tax, and sales tax—were ahead of budget projections by $2.8 billion (40 percent). Tax collections have been coming in well ahead of projections for several months. As a result, total collections for 2020-21 are $11.4 billion (22 percent) ahead of budget expectations. Next week, we will release our annual Fiscal Outlook, which will discuss the implications of these better-than-expected collections for the state’s revenue outlook in the coming months and years.
Withholding and sales tax receipts continue to be the largest sources of better-than-expected collections. In September, we noted a rebound in personal income tax estimated payments. This pattern continued in October, although October is a relatively unimportant month for estimated payments.