|Budget Issue:||May personal income taxes finish $550 million above Governor's projection|
|Finding or Recommendation:||Provides update on May 2013 personal income tax collections.|
According to preliminary data from the Franchise Tax Board, California collected $3.586 billion of General Fund personal income tax (PIT) revenues in May 2013--$550 million (18.1 percent) above the Governor's projection for the month, as incorporated in the administration's May Revision revenue estimates. PIT refunds were $208 million less than expected for the month, and PIT withholding was $167 million (5 percent) above the administration's projection for the month. These two factors explain the bulk of the better-than-projected performance.
May is a minor PIT collection month. As discussed in our earlier online post concerning May PIT revenues, June is a major PIT collection month, focused on receipts from estimated payments, which generally result from taxpayers realizing capital gains or business income. June estimated payment results, however, will not be known until after the June 15 constitutional deadline for the Legislature to submit a 2013-14 budget plan to the Governor.