|Budget Issue:||April income tax payments $237 million above projections, per FTB preliminary tally|
|Finding or Recommendation:||Provides description of Franchise Tax Board's preliminary tally of April 2011 personal income tax and corporation tax payments to the state.|
The Franchise Tax Board (FTB) has released its preliminary tally of April 2011 personal income tax (PIT) and corporation tax (CT) collections--collectively, "income taxes." The data in this posting does not include sales and use taxes (which were reported in a subsequent posting, based on Board of Equalization preliminary tallies) or other revenues.
April Income Taxes $237 Million Above Projections. Results reported by the FTB were generally in line with expectations based on the FTB's daily agency cash reports during April. Net General Fund PIT collections of $7.353 billion were $301 million (4.3 percent) above the administration's projections. (In addition, estimated Mental Health Fund PIT collections totaled $132 million, for total April net PIT collections of $7.485 billion.) Net CT collections of $1.468 billion were $63 million (4.1 percent) below the administration's projections. Accordingly, General Fund income taxes (the sum of the net General Fund PIT and CT totals above) were $237 million (2.8 percent) above the administration's projections for the month and $52 million (0.6 percent) above collections in April 2010.
Year-to-Date 2010-11 Income Taxes $2.3 Billion Above Projections. For the 2010-11 fiscal year to date, net General Fund income tax collections are running $2.3 billion (5.1 percent) above the administration's projections ($2.974 billion above projections for net General Fund PIT, offset by CT collections, which are $654 million below projections). Net General Fund income tax collections for the fiscal year to date are $4.5 billion (10.4 percent) above similar collections for the prior fiscal year. As noted above, this data does not yet reflect sales and use tax collection trends for the year to date.
PIT Results for April 2011. PIT withholding during April 2011 was $246 million (8.7 percent) above the administration's projections, but 0.7 percent below actual PIT withholding in April 2010. For the fiscal year to date PIT withholding continues to be strong--running 4.1 percent above administration projections and 12.1 percent above the prior fiscal year.
PIT estimated tax payments in April were $416 million--35.4 percent--above administration projections. For the fiscal year to date, PIT estimated tax payments are 17.5 percent above projections and 19.8 percent above 2009-10. Final returns and miscellaneous payments combined were $160 million (2.8 percent) below administration projections in April, and PIT refunds for the month were $200 million (8.2 percent) more than administration projections. Overall, net General Fund PIT collections for April were $301 million--4.3 percent--above administration projections and 0.2 percent below actual collections in April 2010.
CT Results for April 2011. Both estimated tax payments and miscellaneous payments for the CT ran below administration projections in April. Gross CT receipts were $68 million (4.2 percent) below administration projections for the month and $93 million (6.3 percent) above actual receipts for April 2010. CT refunds in April were $4 million (4.4 percent) less than administration projections. Overall, net CT collections for April were $63 million--4.1 percent--below administration projections and 4.8 percent above actual collections in April 2010. For the fiscal year to date, net CT receipts are $654 million (8.3 percent) below administration projections and $59 million (0.8 percent) below 2009-10.
Bottom Line. PIT estimated tax payments were notably strong in April. This bodes very well for June--a large PIT estimated tax payment month. CT collections continue to sag, offsetting a portion of the better-than-expected PIT results.
Methodology. The FTB report upon which this update is based is an "agency cash" report. Agency cash—not "Controller's cash"—is used for state budgetary forecasting and reporting purposes. Agency cash differs from Controller's cash (which is reported in monthly state cash flow statements and the State Controller's Office personal income tax daily revenue tracker) based principally on the timing of receipts.