California banked $1.5 billion more than expected at the end of the first week of April. For the period July 1, 2013 through April 8, the State’s “Big Three” revenue sources -- personal income, corporate, and sales taxes -- generated $65.0 billion versus the $63.5 billion that was predicted based on the Governor’s Budget released in January.Personal income taxes accounted for the bulk of the positive variance, with a margin of $1.03 billion, or 102%, of the forecast. Corporate taxes beat estimates by about $550 million and were 14% ahead of estimates. Only retail sales taxes fell short of estimates, although the miss was a relatively small $80 million, or 0.5%.
Capital gains, earned primarily by wealthier Californians, are helping to fuel the State’s personal income tax receipts. Not so long ago, high-income taxpayers were required to make payments on a certain steady basis throughout the year. During the State’s cash shortages during the last 10 years, the payment schedule accelerated. The Franchise Tax Board advises taxpayers with the following: California differs from federal law. To avoid an estimate penalty, taxpayers must pay at least 30 percent by April 15 and 40 percent by June 16 of this year and 30 percent by January 15, 2015.