LAO commentary on Facebook IPO and state revenue forecasts

May 15, 2012 - In light of the significant interest in Friday ’s planned IPO, however, we are releasing the following description of our office ’s Facebook revenue estimates a few days early. The assumed Facebook IPO revenues represent a small part —less than 2 percent —of the state ’s overall revenue forecasts in 2012-13.
https://lao.ca.gov/Recommendations/Details/596

Summary of LAO Findings and Recommendations on the 2012-13 Budget

In light of the significant interest in Friday ’s planned IPO, however, we are releasing the following description of our office ’s Facebook revenue estimates a few days early. The assumed Facebook IPO revenues represent a small part —less than 2 percent —of the state ’s overall revenue forecasts in 2012-13.
https://lao.ca.gov/laoapp/budgetlist/PublicSearch.aspx?PolicyAreaNum=70&KeyCol=596&Yr=2012

Frequently asked questions concerning Facebook and California's General Fund

Aug 1, 2012 - Facebook is assumed to generate under $2 billion (about 1 percent) of this total, and much of that revenue  should still materialize even if the company 's stock price remains depressed.  As noted above, if the company 's stock price remains depressed, hundreds of millions of  income tax dollars assumed in the 2012-13 state budget plan are at risk.
https://lao.ca.gov/Recommendations/Details/618

Background information on LAO's May 2012 economic and revenue forecasts

May 18, 2012 - Figure 2 compares the LAO ’s key May 2012 economic forecast variables for calendar years 2012 and 2013 with those included in (1) the 2012-13 Governor’s Budget in January 2012 , (2) the LAO’s February 2012 forecast , and (3) the Governor’s May Revision of May 14, 2012 .
https://lao.ca.gov/Recommendations/Details/599

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/Article/Detail/852

How Have Past Stock Market Downturns Affected Income Tax Revenue? [EconTax Blog]

Mar 9, 2026 - The Nasdaq composite, which includes the California headquartered companies Nvidia, Google, Facebook, Apple, AMD, and Broadcom, has doubled since 2023. The meteoric rise in the value of these companies has led to sizable gains for their investors and their employees via stock options, which has led income tax collections to grow at double-digit rates.  
https://lao.ca.gov/LAOEconTax/article/Detail/852

The 2012-13 Budget: Economic and Revenue Update [Publication Details]

Feb 27, 2012 - Like the economic data, reports concerning state revenues have been mixed recently too, with weakness in income tax payments accompanied by speculation concerning a future bonanza of tax revenues due to the possible offering of stock by Facebook, Inc.
https://lao.ca.gov/Publications/Detail/2578

Fiscal Outlook: Estimating Wages and Salaries [EconTax Blog]

Nov 14, 2018 - We expect workers in technology sector jobs —which includes firms conducting data processing, software development, and web search, like Google and Facebook —to see strong growth in both average wages and jobs.
https://lao.ca.gov/LAOEconTax/Article/Detail/321

May income tax collections, to date, are above Governor's projections

May 30, 2013 - Healthy withholding trends are the key reason for the May results. Withholding for May 2013  has totaled  about $3.48 billion, which is  $67 million (2 percent) above May 2012 levels, despite the fact that May 2012 is believed to have included a few hundred million dollars of nonrecurring PIT withholding resulting from Facebook, Inc. ’s initial public offering.
https://lao.ca.gov/Recommendations/Details/771

California revenues on track to be over $2 billion under administration target for April

Apr 25, 2012 - Moreover, the administration has said, its January estimates did not anticipate  the likely revenue effects of an initial public offering of stock by Facebook, nor the Governor 's revised tax measure.
https://lao.ca.gov/Recommendations/Details/588