U.S. Retail Sales Update: May 2021 [EconTax Blog]

Jun 15, 2021 - U.S. retail sales dropped by 1.3% from April to May (seasonally adjusted), but sales remain elevated, with 14% growth over the last 6 months.
https://lao.ca.gov/LAOEconTax/Article/Detail/666

Examining California's Income Tax Withholding Growth by Sector [EconTax Blog]

Jun 9, 2021 - Examining California's Income Tax Withholding Growth by Sector [EconTax Blog] Examining California 's Income Tax Withholding Growth by Sector June 9, 2021 Brian Uhler Bottom Line: While high-tech firms have played a big role, the recent increase in California income tax withholding has been broad-based.
https://lao.ca.gov/LAOEconTax/Article/Detail/662

Cannabis Tax Revenue Update [EconTax Blog]

Jun 2, 2021 - Cannabis Tax Revenue Update [EconTax Blog] Seth Kerstein In November 2016, California voters approved Proposition 64 , which legalized the nonmedical use of cannabis. The state levies two excise taxes on cannabis: a retail excise tax and a cultivation tax.
https://lao.ca.gov/LAOEconTax/Article/Detail/661

Income Tax Withholding Tracker: May 1 - May 28 [EconTax Blog]

May 28, 2021 - Income Tax Withholding Tracker: May 1 - May 28 [EconTax Blog] Income Tax Withholding Tracker: May 1 - May 28 May 28, 2021 Brian Uhler Bottom Line: California income tax withholding collections in May were 29.4 percent above May 2020.
https://lao.ca.gov/LAOEconTax/Article/Detail/660

Despite Fiscal Forecasting Uncertainties, Multiyear Budget Planning Essential

May 27, 2021 - Prudence dictates that only when baseline projections show operating surpluses (annual revenues exceeding expenditures) can new ongoing commitments or tax reductions be considered. Conversely, if projections indicate a looming structural deficit, the estimates are helpful in functioning as an early warning system.
https://lao.ca.gov/Publications/Report/4443

Repaying the State’s Federal Unemployment Insurance Loan

May 26, 2021 - UI Program Is Financed With Payroll Taxes Paid by Employers. Employers pay both state and federal UI payroll taxes. State UI tax revenues are deposited into the state ’s UI trust fund to pay benefits to unemployed workers.
https://lao.ca.gov/Publications/Report/4442

The 2021-22 Budget: Multiyear Budget Outlook

May 23, 2021 - Under our estimates, recent gains in revenues —particularly from taxes on higher income earners —would persist and continue to grow close to the historical average rate. (For more discussion of our assumptions, please see: The 2021‑22 Budget: May Revenue Outlook .)
https://lao.ca.gov/Publications/Report/4437

The 2021-22 May Revision: Golden State Stimulus 2

May 18, 2021 - The state ’s first stimulus program also provided an extra $600 payment to low-income undocumented workers who pay taxes using an individual taxpayer identification number (ITIN). ITINs are used by about half of the state ’s undocumented workers to pay taxes.
https://lao.ca.gov/Publications/Report/4435

The 2021-22 Budget: May Revenue Outlook [EconTax Blog]

May 17, 2021 - Despite Pandemic, Tax Collections Are Way Up State tax collections over the last year have been extraordinary. Not only has much of the state ’s tax base —such as payrolls, taxable retail sales, and business profits —been surprisingly resilient, but tax collections have grown well beyond their pre-pandemic baseline.
https://lao.ca.gov/LAOEconTax/Article/Detail/654

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - If the Legislature wants to make different decisions about this spending (without statutory changes or fund shifts), it can either: (1)  use the funds to make tax rebates and additional payments to schools, (2)  spend on other SAL-excluded purposes, or (3)  use the funds to reduce taxes.
https://lao.ca.gov/Publications/Report/4432