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Economy

California Sees Warning Sign From Weak Tax Revenue Collections

  • Personal income tax collections come in below expectations
  • California also saw its unemployment rate increase in August
The California State Capital building in Sacramento.

The California State Capital building in Sacramento.

Photographer: David Paul Morris/Bloomberg

California drew in 11% less in personal income tax revenue than it expected so far this year, the latest warning sign for the finances of a state whose fortunes are closely tied to the performance of markets. 

Total revenue collections through August, which is the second month of the 2022-2023 fiscal year, came in about 8% below the forecast, according to a bulletin from the California Department of Finance.