California’s tax revenues far exceeded expectations in January for the second consecutive month, but it remains to be seen how much of the excess reflects underlying strength in the economy, versus people speeding up their 2017 state income tax payments while they were still fully deductible on federal tax returns.
State income tax revenues for January totaled $16.3billion, which was $2.5 billion higher than was expected in its current forecast released in January.
Most of that came from personal income tax payments of $13.1 billion, which was $2.4 billion more than expected. The rest came from corporate income tax and sales and use taxes.
In December, total state income taxes came in a whopping $4 billion ahead of expectations, with $3.2 billion of that surprise coming from personal income taxes.
View Article