May revenues steady, attention turns to June
(Calif.) Tax revenues in May came in almost exactly as predicted but state officials are waiting to see how things will look by the end of June, the second most important collection month.
The governor’s Department of Finance reported that total income last month was a mere $27 million above the estimate of $7.9 billion made just a few weeks ahead of the release of the revised May budget.
Year-to-date numbers are also close to what was forecast, ending the month $65 million below the expected total collection of almost $117 billion.
May is generally not a big month for revenue, although during the past two years analysts have been repeatedly surprised at the timing of big tax payments.
Beginning with the election of Donald Trump, the Standard & Poor Index is up almost 25 percent even with the volatile swings during the last few weeks, and yesterday’s loss of 285 points in the Dow. But for most of 2017, Wall Street investors were reluctant to take profits before Trump and Congressional leaders agreed on a new tax package.
Although collections in April, traditionally the state’s biggest month for personal income tax, were almost $500 million more than expected—there is still a sense that June may prove a big month as well.
The May total for personal income tax came in $516 million above the month’s forecast of $4.4 billion. Year-to-date income tax revenues are running $411 million above forecast.
Sales tax receipts were $392 million below the month’s forecast of $ $2.4 billion.
Finally, corporation tax revenues were $92 million below the month’s forecast of $650 million and $80 million below the year-to-date forecast.