Net general fund revenues totaled $3.240 billion in January, $649 million (25.0 percent) more than forecast. Net receipts from the corporate, sales, and other taxes were above the forecast, while net individual income tax receipts were lower than forecast. For fiscal year 2022, year to date receipts are now $16.163 billion, $1.482 billion (10.1 percent) more than forecast. However, a substantial portion of December and January individual and corporate tax collections are Pass-Through Entity Tax (PTE) estimated payments that will be credited against business owners’ individual income tax liability for TY 2021, lowering income tax final payments and raising refunds in CY 2022. We estimate that about $1.2 billion of the fiscal-year-to-date overall variance arises from the PTE timing shift.

• View the full memo, including tabular data
• Visit the Economic Forecast Monthly and Quarterly Updates landing page

Note: All results are preliminary and subject to revision. Monthly revenue variances should be interpreted with great caution. Wide swings in variances may be caused by variations in the rate at which receipts are received and processed and differences in the rate at which refunds are issued.