Californians paid some $1 billion in taxes above official projections during the first three months of the state’s fiscal year, in what could be a major boost to the government’s bottom line once Gov. Jerry Brown leaves office in January.
A monthly report issued Tuesday by the state Department of Finance attributed most of the unexpected revenue — $990 million — from personal income taxes paid between July 1 and Sept. 30. Sales taxes were slightly below expectations written into the budget crafted by Brown and state lawmakers in June, while corporation tax revenues were slightly above forecasts.
The new tax windfall comes on the heels of successive years in which revenues have bested expectations, a streak that has allowed the state to push toward its largest long-term cash reserve ever — $13.8 billion by next summer. But the surprise cash from the state government’s first quarter could be erased by weaker revenue collections in the coming months.View Article