TAX NEWS - June 2010

California tax collections increase in May

After a devastating month of tax collections in April, California bounced back in May, with tax receipts $592 million higher than projected, according to a new report from the state controller.

Each additional dollar the state collects in taxes is less that must be accounted for in solving the state's $19.1-billion deficit.

State Controller John Chiang noted in a statement that the May revenue bump "represents only three percent" of the deficit and that "the financial problems before the Legislature and governor remain just as daunting and time-sensitive as they did a month ago."