No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from. More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate...
On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.) This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July overage was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department said in its monthly bulletin...
Full story at https://calmatters.org/economy/technology/2024/10/ca-corporate-tax-revenue-surge/.
We noted, however, that the other major taxes also were coming in ahead of forecast levels. So, the total overage seems to be due to more than corporate prosperity.
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*https://uclafacultyassociation.blogspot.com/2024/09/two-months-of-cash.html.
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