How Long Do Firms Take from Founding to IPO? [EconTax Blog]

Aug 18, 2021 - While state revenues from IPOs are highly variable and difficult to forecast, the uptick in seed funding in recent years suggests the recent increase in IPO activity could continue. As the typical public firm takes about 8 to 10 years between its founding date and its IPO date, we likely have not yet seen all or even most of the IPOs associated with the recent increases in seed funding to California firms.
https://lao.ca.gov/LAOEconTax/Article/Detail/685

Why is Venture Capital Funding a Useful Economic Indicator? [EconTax Blog]

Feb 18, 2021 - Over the longer term, VC funding can significantly impact state revenue through another channel: initial public stock offerings (IPOs) of privately held firms. When a firm goes public through an IPO, its owners and employees will typically realize large gains from stock options, and these gains are taxable as ordinary income under state and federal law.
https://lao.ca.gov/LAOEconTax/Article/Detail/626

Income Tax Withholding Tracker: November 1 - November 30 [EconTax Blog]

Nov 30, 2021 - We note that IPO-rela ted withholding on employees ’ ‘restricted stock units ’ is due on the date that the stock units vest, which may be later than the company ’s IPO date. The next graph shows cumulative withholding since the start of the fiscal year compared to the same dates in 2020-21 and 2019-20.
https://lao.ca.gov/LAOEconTax/Article/Detail/719

Income Tax Withholding Tracker: October 1 - October 31 [EconTax Blog]

Nov 3, 2021 - We note that IPO-related withholding on employees ’ ‘restricted stock units ’ is due on the date that the stock units vest, which may be later than the company ’s IPO date. The next graph shows cumulative withholding since the start of the fiscal year compared to the same dates in 2020-21 and 2019-20.
https://lao.ca.gov/LAOEconTax/Article/Detail/710

Income Tax Withholding Tracker: September 1 - September 24 [EconTax Blog]

Sep 24, 2021 - We note that IPO-related withholding on employees ’ ‘restricted stock units ’ is due on the date that the stock units vest, which may be later than the company ’s IPO date. The next graph shows cumulative withholding since the start of the fiscal year compared to the same dates in 2020-21 and 2019-20.
https://lao.ca.gov/LAOEconTax/Article/Detail/702

Why Has Income Tax Withholding Lagged, Despite Job Growth? [EconTax Blog]

Nov 16, 2022 - The drop-off in IPO activity likely has also contributed to the relatively weak withholding figures seen to-date. While the typical share of withholding collections on bonuses and stock options is unknown, these types of incomes likely contributed to strong  tax withholding growth in 2021.
https://lao.ca.gov/LAOEconTax/Article/Detail/759

Whether or Not to Tap Reserves to Solve Estimated Budget Problem Emerges as Key Fiscal Decision Facing California’s Legislature

Apr 19, 2023 - We have attributed some of the weaker-than-expected personal income withholding tax collections so far to a steep 84  percent decline in initial public offering (IPO) activity in 2022. Given that many IPOs in recent years have been among technology-related firms, the ongoing slowdown in that sector combined with more restrictive access to credit going forward is cautionary.
https://lao.ca.gov/Publications/Report/4762

Income Tax Withholding Tracker: July 1 - July 23 [EconTax Blog]

Jul 23, 2021 - Other IPOs of companies valued at $1 billion or more included LegalZoom, Blend, and Couchbase. In contrast, eight California companies went public over the same dates in 2020, but of these only Berkeley Lights was valued above $1 billion.
https://lao.ca.gov/LAOEconTax/Article/Detail/679

Income Tax Withholding Tracker: June 1-June 25 [EconTax Blog]

Jun 25, 2021 - Other IPOs of companies valued at $1 billion or more included SoFi, W alkMe, 23andMe, Embark Trucks, and Confluent. In contrast, nine California companies went public in June 2020, but of these only Agora.io was valued above $1 billion.
https://lao.ca.gov/LAOEconTax/Article/Detail/670

Income Tax Withholding Tracker: April 1 - April 26 [EconTax Blog]

Apr 26, 2021 - Other IPOs of companies valued at $1 billion or more included Agilon Health, TuSimple, and Zymergen. In contrast, the only California company to go public in April 2020 was Oric Pharmaceuticals with an initial valuation of $459 million.
https://lao.ca.gov/LAOEconTax/Article/Detail/644