LOS ANGELES — California revenues came in $275 million below the 2017-18 Budget Act forecast, according to the Department of Finance’s monthly cash report.
Preliminary agency cash for fiscal year 2016-17 was $65 million below the forecast of $122.6 billion.
June cash receipts represent the second estimated payment of 40% of liability due mid-month for personal income tax filers and calendar-year corporations.
S&P Analyst Gabriel Petek has opined that the state's revenues -- heavily dependent on income tax and capital gains -- are down, because the wealthy are holding off on cashing out stocks in anticipation of tax cuts proposed by the Trump Administration.
There is a theory that states are seeing less revenue from capital gains, Petek said, because investors are waiting to see whether the Trump administration will lower taxes on capital gains before selling stocks. If that theory holds, he said, states could realize the benefit of recent stock market gains during next year’s tax filing season.
Personal income tax receipts to the General Fund were $89 million below the month's forecast of $11.2 billion. Withholding receipts were $237 million above the forecast of $4.4 billion. Fiscal year 2016-17 General Fund personal income tax cash receipts were $102 million below forecast.
Proposition 63 requires that 1.76% of total monthly personal income tax collections be transferred to the Mental Health Services Fund. The amount transferred to the MHSF in June was $2 million lower than the forecast of $199 million.
Sales and use tax receipts were $60 million above the month's forecast of $2.4 billion. Fiscal year 2016-17.
Corporation tax cash receipts were $331 million below the month's forecast of $2.8 billion. Fiscal year 2016-17 corporate income tax cash receipts were $274 million below forecast.