April Revenues Looking Up, Potentially Alleviating Concerns Over Shortfall
The Legislative Analyst’s Office (LAO) provides monthly updates on their tracking of the state tax collections and released their April update on personal income tax (PIT) collections earlier this week. April is an important month for PIT collections since it is the month that individuals are required to file final tax payments for the prior year. In January, PIT collections were coming in short of the Administration’s projections by roughly $2.7 billion. However, the shortfall was assumed to be the result of recent federal tax laws and as such April PIT collections were anticipated to be higher than projected. Currently, total PIT collections are about $2.5 billion ahead of projections for the month.
Corporation tax collections are also running ahead of projections by about $3.3 billion.