PolitiCal

On politics in the Golden State

« Previous Post | PolitiCal Home | Next Post »

Refunds fill Californians' wallets but could drain state budget

May 2, 2012 | 12:56 pm

California taxpayers had a good April -– they're getting more than $2.6 billion in income tax refunds. But that's bad news for the state’s bottom line, because accountants expected to pay out only $2 billion
California taxpayers had a good April -– they're getting more than $2.6 billion in income tax refunds.

But that's bad news for the state’s bottom line, because accountants expected to pay out only $2 billion.

The almost 30% gap, detailed in numbers from the Franchise Tax Board and Gov. Jerry Brown's Department of Finance, is exacerbating an already difficult month for California's finances.

Income taxes were 20% below expectations set by the Brown administration, and corporate taxes were about 10% below.

California has consistently paid out higher income tax refunds than expected in the current fiscal year, which ends June 30.  Refunds totaled $2.34 billion in March, 15% above projections.

H.D. Palmer, spokesman for the Department of Finance, said the state may simply be paying refunds faster than usual. That means a check that would have been sent out in May was already sent out in April.

Indeed, the nonpartisan Legislative Analyst’s Office said in a report released Tuesday that the state may issue fewer refunds in May, helping offset the jump in April.

RELATED:

S&P sounds alarm over April tax revenue

California's budget still mired in dysfunction, S&P says

What's in the envelope? Not enough tax money for California

-- Chris Megerian in Sacramento
twitter.com/@chrismegerian

Photo: Large boxes full of already opened and emptied envelopes sit at the Franchise Tax Board in Sacramento. Credit: Laura Morton / For The Times

Comments 

Advertisement










Video