A Surge in Tax Receipts

Today was very strong in terms of California's tax take, according to preliminary figures. April 16 receipts of California's three major revenue engines -- personal income taxes (PIT), corporate income taxes, and retail sales receipts -- reached $3.1 billion. This brings the month-to-date total to $7.3 billion, or 56%, of the total expected for the month.

Today's collection of PIT led the surge, totaling $2.5 billion for the day. This was virtually identical to last year's tax take and appears surprising since a change in tax rates probably boosted last April's figure. Some caution is warranted due to revisions that could take place tonight, but if the numbers stand close to this reading it is good news for California's bottom line.

Also worth noting: Not only individuals and households filed their income tax returns yesterday. Sole proprietorships file under the income tax system as well. In 2011, 2.2 million sole proprietorships filed with FTB, and were assessed $9.8 billion in taxes. Of this tax assessed, service firms account for about $5.8 billion (59 percent). These firms could provide technical, scientific, administrative or health services. Firms specializing in finance, investment and real estate owed $1.4 billion (14 percent), while firms specializing in retail and wholesale trade had assessments of about $600 million (6 percent). FTB assessed another 500,000 firms $1.1 billion (11 percent), but FTB was unable to determine the nature of the sole proprietorship's business.