It’s too early to know for sure, but so far sales tax revenue this year appears to be largely on track to meet the state’s budget needs.
The latest general fund sales and use tax revenue numbers show that from July through September the State Board of Equalization received $4.64 billion in revenue. That’s just two and a half percent shy of the Department of Finance’s budget projection of $4.76 billion.
Of course, I can’t help but think that if more Californians had jobs, these revenue numbers would be even stronger.
The latest numbers do not reflect the recent spike in gas prices. And those high fuel prices have the potential to create a tax windfall for state and local government.
Earlier this year I proposed legislation capping rising fuel taxes. Unfortunately, it failed to gain traction in the Legislature.
We don’t know yet how much revenue will come in this month. But we do know one thing for sure: Californians will pay plenty in tax.