Annual Report 2010-2011


Economic Analysis

National Economy

In fiscal year 2010-11 real U.S. Gross Domestic Product (GDP) grew faster than average, while many other important measures of economic activity languished near their levels reached in the "Great Recession" of 2008-2009. On the positive side, the U.S. economy was characterized by relatively strong growth in real GDP, sharply rising corporate profits, modestly increasing employment, declining unemployment rates, very low interest rates, and below-average inflation rates. However, on the negative side, unemployment rates remained much higher than average, housing starts stayed at recessionary lows, and the federal government deficit stood near a record high percentage of GDP. Although the recession ended in June 2009, the economy continued to show its impacts, with an average unemployment rate of 9.3 percent in fiscal year 2010-11. This rate is more than twice as high as the 4.5 percent unemployment rate in fiscal year 2006-07, the last fiscal year before the recession started.

Gross Domestic Product

Real GDP—the broadest measure of the nation's output of goods and services—rose 2.6 percent in fiscal year 2010-11. This is the strongest growth since fiscal year 2005-06.

US GDP

Real GDP by Sector

Exports and investments led economic growth. Exports rose 9.3 percent, as many trading partners pulled out of their respective 2008-2009 recessions faster than the U.S. did, increasing their demand for U.S. goods. Exports made up 13 percent of total real GDP in 2010-11.

2010-11 Growth in Real GDP and Major Components

Real domestic fixed investment spending, which comprised 12 percent of total real GDP, grew 6.0 percent. As for components of fixed investment, real spending on equipment and software jumped 14.0 percent, the strongest increase since fiscal year 1997-98. In contrast, spending on both of the remaining two major components of fixed investment (primarily residential and nonresidential structures) continued their years-long declines. Inflation-adjusted spending on residential investment fell 6.0 percent, while nonresidential structures spending dropped 2.4 percent. Private investment spending on all structures combined has declined in each of the last five fiscal years.

Real consumer spending rose 2.5 percent, about the same as overall real GDP. Consumer spending is very important to the economy, since it accounts for 71 percent of total GDP. Consumer spending has three major components: durable goods, nondurable goods, and services. While all three components rose, durable goods spending increased the most, 8.8 percent in inflation-adjusted terms. Spending increased for a wide variety of durable goods, such as new cars and home furnishings. Real nondurable goods spending rose 2.9 percent, while real services spending increased 1.5 percent.

Total government spending declined 0.6 percent after adjusting for inflation, the first decline since 1993-94. Federal government spending rose only 1.2 percent, as spending on both the domestic economic stimulus package and defense costs associated with wars in Iraq and Afghanistan wound down. Real nondefense federal spending increased 3.4 percent, while defense spending was essentially flat, rising just 0.1 percent. State and local government spending fell 1.8 percent, as many states continued to pare spending in ongoing responses to weak revenues during the recession. State and local government investment (spending on goods such as roads, buildings, and computers) declined 4.6 percent, pulling down overall state and local government spending.

Quarterly Real GDP Growth

Real GDP growth was much stronger during the first half of the fiscal year than it was in the latter half on a seasonally adjusted annualized basis. Growth was well over two percent in the first half, but averaged less than one percent in the latter half.

Quarterly Real GDP Growth

Corporate Profits

After firms sharply cut production, costs, and employment during the recession, many were well positioned to see increased profits when U.S. and worldwide economic growth resumed in mid-2009. U.S. corporate profits before taxes jumped 37.6 percent in fiscal year 2009-10 (the largest fiscal-year gain since quarterly profit records started being reported by the Bureau of Economic Analysis in 1947) and were up an additional 15.1 percent in 2010-11. Low inflation, low borrowing costs, and increased productivity contributed to boost profits in both years.

Nonagricultural Employment and the Unemployment Rate

With the growth in overall real GDP and corporate profits, nonagricultural employment inched up 0.5 percent. While a welcome change from the declines averaging 3.0 percent per year of the previous two fiscal years, the increase was still well below pre-recession growth rates that averaged 1.6 percent in the three fiscal years prior to the recession.

The seasonally adjusted U.S. unemployment rate showed no consistent pattern throughout fiscal year 2010-11. The rate rose during the fall of 2010, fell during the winter, and rose again in the spring. By June 2011 the U.S. unemployment rate was 9.2 percent. For the fiscal year as a whole, the U.S. unemployment rate averaged 9.3 percent, down from 9.8 percent the prior fiscal year. However, this rate is still considered to be at a recessionary level by most economists, and it does not include large additional numbers of people who are either underemployed or too discouraged to be actively looking for jobs. Furthermore, as fiscal year 2010-11 drew to a close, the unemployment rate quit declining, as overall economic growth slowed.

Interest Rates

The U.S. Federal Reserve Board (Fed) maintained extremely low interest rates in 2010-11, essentially continuing its monetary policy instituted during the recession. The Fed kept the federal funds rate within a target range of zero to 0.25 percent. Three-month U.S. Treasury bill rates averaged 0.12 percent in fiscal year 2010-11, while ten-year U.S. Treasury bond yields averaged 3.08 percent.

Consumer Prices

In the aftermath of the recession, with lingering high unemployment rates and many underutilized physical assets, there was generally little upward pressure on prices for goods and services traded primarily in domestic markets, such as housing. Housing comprises over 30 percent of the "market basket" of the CPI, so it has a large proportional influence on the overall average CPI. The overall U.S. consumer price index rose 2.0 percent in 2010-11, slightly below the ten-year average of 2.4 percent.

While the overall CPI increase was less than average, price increases for commodities traded primarily in global markets, particularly energy, increased rapidly. In 2010-11, the energy component of the U.S. CPI rose 10.5 percent, while all other goods and services excluding energy increased 1.2 percent.

Housing Starts

Though the recession was over, housing starts continued to languish at recessionary levels in fiscal year 2010-11. There were 0.57 million housing starts in fiscal year 2010-11, down from 0.59 million in 2009-10. Starts have been more than two-thirds below the fiscal year 2005-06 peak level of 2.03 million starts for the past three years, and are at their lowest number in more than 50 years. Housing starts are also well under numbers required to satisfy normal demographic demand. According to the U.S. Congressional Budget Office, annual construction of about 1.5 million units per year are necessary to keep up with growth of the population and to replace obsolete units.

Federal Budget Deficit

In federal fiscal year 2010-11 the deficit was $1.299 trillion (federal fiscal years end September 30 of each respective year). In terms of percentages of GDP, the 2010-11 deficit was about 8.7 percent of GDP, well above the 2.8 percent average over the past 40 years. The deficit changed little from the prior year, as both receipts and outlays increased.

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California Economy

By some important measures the California economy mirrored national growth in fiscal year 2010-11. California nonagricultural employment rose 0.7 percent, close to the U.S. gains of 0.6 percent. California personal income increased 6.2 percent, above U.S. income growth of 5.4 percent. Technology industries and exports performed well, and California is a leader in these sectors, which boosted income growth.

Growth in California and U.S. Nonagricultural Employment Fiscal Years 2000-01 Through 2009-10

However, while employment and income grew, other measures of economic activity and economic growth were extremely weak in fiscal year 2010-11. Entering the recession the state was suffering from the impacts of the home lending crisis of 2007, as California has a disproportionately large share of the nation’s subprime and adjustable mortgages. The state is still suffering from the effects of a weak housing sector, more than the rest of the country, and these impacts are clearly evident in the entire economy, not just housing.

In 2010-11 the California unemployment rate averaged 12.1 percent, 2.8 percentage points higher than the national rate. Unlike the nation, the unemployment rate did not come down significantly in 2010-11, but remained very close to the level it was the prior year. To put this rate into perspective, over the past two years the California unemployment rate has been at its highest level since 1940. The only other fiscal year that the California unemployment rate was in double digits since World War II was in 1982-83, when it averaged 10.7 percent.

Employment

California nonagricultural employment increased 0.7 percent in fiscal year 2010-11, as payrolls rose by 99,000 jobs. Private sector payrolls increased by 134,000 jobs (1.2 percent), but the overall total was reduced by the loss of 35,000 government jobs.

Private and Public Sector Changes in Jobs

Employment Sectors

Professional and Business Services. Professional and business services gained 60,000 jobs in 2010-11, more than any other industry. This was a 3.0 percent increase. Gains were widespread, with the largest being in consulting, employment services, and computer systems design. The professional and business services category is the state's third largest sector, employing 15 percent of Californian nonagricultural workers.

2010-11 Changes in California Nonagricultural Employment

Educational and Health Services. Private educational and health services jobs rose by 39,000, 2.2 percent in 2010-11. This is a relatively large sector, accounting for about 13 percent of nonfarm employment. About two-thirds of the jobs added in this sector were in health care and social services.

Trade, Transportation, and Utilities. In 2010-11, trade, transportation, and utilities gained 29,000 jobs, a 1.1 percent increase. The trade, transportation, and utilities sector is the state's largest employment grouping, accounting for about 19 percent of all nonfarm jobs. The sector is comprised of three related industries: (1) wholesale trade, (2) retail trade, and (3) transportation, warehousing, and utilities. Wholesale trade employment was up 2.2 percent, greater than the 0.7 percent increase in retail trade employment. Increases in exports boosted wholesale trade jobs associated with a wide variety of durable and nondurable goods. Most of the retail jobs added were in general merchandise stores other than department stores. Retail clothing stores also increased hiring. Employment in transportation, warehousing, and utilities sector rose 0.7 percent.

Leisure and Hospitality. Employment in leisure and hospitality industries, such as restaurants and hotels, increased 1.9 percent in 2010-11, a gain of 28,000 jobs. The majority of the new jobs were in food services. Leisure and hospitality industries employ about 11 percent of nonfarm Californian workers.

Growth in Components of Trade, Transportation, and Utilities Employment

Other Sectors. Other sectors (defined here as mining and natural resources and other services) provided employment for 4 percent of nonagricultural workers. Employment in this group increased by 1.4 percent (7,000 jobs).

Information. Information providers—publishing, motion pictures, broadcasting, telecommunications and Internet services—gained about 1,000 jobs, a 0.3 percent increase. Gains in motion pictures and software offset losses in telecommunications, print publishing, and broadcasting. Information jobs account for a relatively small share of state jobs, about 3 percent.

Manufacturing. Employment in manufacturing was largely unchanged, declining 0.1 percent (about 1,000 jobs). There were some job gains in basic manufacturing and technology and electronics industries, but these were offset by losses in transportation and various other manufacturing industries. Manufacturing employs 9 percent of workers on nonagricultural payrolls.

Financial Activities. Employment in financial activities—lenders, insurance agents, and real estate brokers—declined 0.5 percent (4,000 jobs). Financial activities account for about 5 percent of nonfarm Californian jobs.

Construction. Despite an increase in building activity in 2010-11, construction employment continued to shrink. The construction industry lost 25,000 jobs, a 4.3 percent decline. Most of the jobs lost were in specialty construction trades. About 4 percent of all nonfarm jobs are in construction.

Government. Government employment decreased by about 35,000 jobs, a 1.4 percent decline. In the most recent two years over 80,000 government jobs have been cut, leaving government employment levels close to those of fiscal year 2001-02. The losses were most pronounced at the federal and local levels, with total state jobs showing small gains from the prior year. Government is California's second largest sector, with 17 percent of all California nonagricultural jobs.

Changes in Government Employment

Building Construction and Home Prices

The value of all private building construction permits issued in California rose by 9.8 percent in fiscal year 2010-11, the first increase in four years. The value of residential building permits rose by 9.0 percent, while nonresidential construction had an increase of a similar magnitude, 10.8 percent. Even with the gains, total construction permit values are still only about 40 percent of their 2005-06 peak levels.

Changes in the Value of Building Construction by Fiscal Year

About 46,000 home building permits were issued in 2010-11, up from a record low of 40,000 the prior year. Multi-family building permits rose by about 10,000 units, while single family home permits dropped by 4,000 units to a record low level. Most of the gain in nonresidential permit valuations were for alterations and additions to existing structures.

Median home prices were essentially flat, decreasing 0.6 percent to average $298,000 in fiscal year 2010-11. Many of these sales were foreclosures and other distressed sales. Data from the California Association of Realtors indicates that about 45% of California home sales in fiscal year 2010-11 were foreclosures or other distressed sales such as short sales. Median California home prices in 2010-11 were 48 percent below their peak in fiscal year 2006-07, and are below the average for calendar year 2002. A total of 486,000 existing single-family homes were sold in fiscal year 2010-11, down 8.2 percent.

Vehicle Registrations

California new car and truck registrations rose sharply in fiscal year 2010-11, at a rate similar to the increase in national car and truck sales. California new car and truck registrations rose 9.2 percent to 1.2 million vehicles. Despite the gain, new vehicle registrations in California in fiscal year 2010-11 were about 64 percent of the 2005-06 peak of 1.8 million units.

Changes in California and U.S. New Light Vehicle Sales

Consumer Prices

California consumer prices for all urban consumers rose 1.7 percent in 2010-11, up from a 0.7 increase in percent in 2009-10. At the national level, the consumer price index increased similarly, by 2.0 percent in 2010-11.

Changes in California and U.S. Consumer Prices

Temporary Sales and Use Tax Increase Remains in Effect

In recent years California has faced multiple budget crises brought about by the combination of the recession, the tepid recovery, and various state laws. In fiscal year 2008-09, a centerpiece of responding to the shortfall in revenues was enactment of a temporary increase in the state portion of the sales and use tax that took effect April 1, 2009. The state portion of the sales and use tax rose from 5 percent to 6 percent, and was in effect until June 30, 2011.

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Taxable Sales Activity

Transactions subject to the sales and use tax totaled $498.5 billion during the 2010-11 fiscal year. This was an increase of $35.4 billion, or 7.7 percent, compared to 2009-10. Taxable sales growth improved every quarter as the fiscal year unfolded (see table, below).

2010-11 Taxable Sales

Growth in Actual Dollars Compared to Growth in Constant-Value Dollars

Taxable Transactions Percent Change From Prior Year In
Quarter Amount (Thousands of dollars) Percent of Total Actual Dollars Constant Value Dollars California Taxable Sales Deflator
July-September $121,329,849 24.3 5.0 4.2 0.7
October-December $128,910,334 25.9 7.1 6.4 0.6
January-March $118,326,354 23.7 9.0 6.5 2.3
April-June $129,926,975 26.1 9.6 4.7 4.7
Fiscal Year $498,493,511 100.0 7.7 5.5 2.1

Taxable sales increased by 5.5 percent over the previous fiscal year when measured in constant dollars. The California Taxable Sales Deflator—an index that tracks price changes only for commodities subject to the sales and use tax—showed annual inflation of 2.1 percent. Price growth as measured by the deflator rose modestly during the first half of the fiscal year, but accelerated during the latter half. Much of the increase in the growth of the Deflator in the second half was from gasoline prices, which rose sharply. The inflation rate shown by the Deflator was close to the 1.7 percent indicated by the California Consumer Price Index, which also measures price increases for housing costs and services, which are not subject to the sales and use tax.

Taxable Sales by Industry

Taxable sales consist of sales made by two major groups of sellers: (1) retail and food services industries and (2) all other outlets. Taxable sales of all other outlets are mostly business equipment and construction goods. In fiscal year 2010-11 taxable retail and food services sales accounted for about 68 percent of total taxable sales, with the remaining 32 percent from all other outlets.

Taxable sales made by retail and food services industries increased 7.1 percent in fiscal year 2010-11. Taxable sales from all other outlets rose faster, 8.9 percent growth. The more rapid taxable sales gains for all other outlets is consistent with national data showing greater growth in fixed investment spending (business purchases) than in personal consumption spending.

Retail taxable sales made by food services, gasoline stations, motor vehicle dealers, and general merchandise stores were the four largest retail industries, each comprising close to 10 percent of total taxable sales in fiscal year 2010-11. Taxable sales were widely dispersed among other retail industries, ranging from 0.6 percent to 5.7 percent of the total.

Industry Components of 2010-11 Taxable Sales

While taxable sales in all major retail industries increased in 2010-11, those made by gasoline stations rose the most by far, with an 18.5 percent gain. The next fastest growing retail industry was motor vehicles and parts, which saw its sales rise 9.6 percent. The rest of the retail industries had taxable sales gains ranging from about 2 percent to 7 percent.

California gas prices rose 15.5 percent in fiscal year 2010-11, which accounted for most of the increase in taxable sales made by gas stations. Taxable sales made by both new car and used car dealers posted double-digit increases, boosting motor vehicle sales. However, other motor vehicle sales were essentially flat, declining 0.6 percent. Other motor vehicles include motorcycles, recreational vehicles, pleasure boats, and pleasure aircraft. National data indicate that these retail industries were still seeing sales slowed by the lingering effects of the recession.

Appendix Table 19 on page A-28 shows details on taxable sales activity and the number of sales tax permittees by business type. Appendix Table 20 shows taxable sales by county.

Growth in Taxable Sales by Industry

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Revenue Growth

Tax programs administered by the Board of Equalization produced state and local revenues totaling $53,719,450,000 during fiscal year 2010-11. This was an increase of $3.0 billion, or 6.0 percent, from 2009-10.

Revenues from each tax are presented in the text table entitled "Comparison of Revenues, 2009-10 and 2010-11." Additional detail and historical comparisons are found in Appendix Table 2, on page A-2.

Sales and Use Taxes

Sales and use taxes contribute 79 percent of the revenue from BOE-administered tax and fee programs. Combined revenue from all state and local sales and use taxes and fees totaled $42,517,662,000 in 2010-11, an increase of 0.8 percent from 2009-10. The state portion of sales and use taxes declined 1.1 percent, while the local portion increased 5.0 percent.

Legislation caused the disparity in the growth rates of the state and local portions of the sales and use taxes. Without legislative changes, we would expect the growth rates for each to be virtually identical in most years. However, in fiscal year 2010-11, the state portion of the sales and use tax figures was distorted by legislative changes to the gasoline excise tax rate and the sales and use tax rate on gasoline. The provisions affecting revenues were enacted by Assembly Bill x8-6 (Chapter 11, Statutes of 2010) and Senate Bill 70 (Chapter 9, Statutes of 2010. These law changes, commonly called the "fuel tax swap" provide for a combination of lowering the sales and use tax rate applicable to sales of motor vehicle fuel (excluding aviation gasoline) and simultaneously raising the state excise motor vehicle fuel tax, effective July 1, 2010 for gasoline. Consequently, compared to the fiscal year 2009-10 figures, state sales and use tax revenues are lower and gasoline tax revenues are higher for each taxable gallon of gasoline sold in California. Since gasoline sales comprise a large portion of total taxable sales, the effects of the fuel tax swap on total sales and use tax revenues are very significant. The 5.0 percent growth in local sales and use tax revenues reflects the underlying economy, while the 1.1 percent decline in the state portion of taxable sales indicates the impacts of the fuel tax swap.

The state's portion of the sales tax was $28,523,007,000 (including fees and the fiscal recovery fund). This includes revenues from a temporary increase in the state rate from 5.0 percent to 6.0 percent that became effective April 1, 2009¹. The portion allocated to other jurisdictions—cities, counties and special districts—totaled $13,994,655,000, including allocations to the Local Revenue Fund and the Public Safety Fund. Sales and use tax details are provided in Appendix Tables 18 through 23B, beginning on page A-26.

By the end of the fiscal year, special district taxes were being levied by 130 jurisdictions in 43 counties (see "District Transactions (Sales) and Use Tax," in the Revenues chapter). These counties are the source of 97 percent of all taxable sales in the state. Some districts cover entire counties while others are restricted to city limits or other legal boundaries. Special district information is located in Appendix Table 21C, on page A-34. Appendix Table 23B, on page A-40, lists total sales and use tax rates by county.

Special Taxes

Fuel taxes. In 2010-11, the state’s fuel tax revenues totaled $5,683,361,000, a 79.4 percent increase from the previous fiscal year. The fuel tax swap discussed earlier greatly affected gasoline tax revenues, and is the reason for the dramatic increase. Distribution of gasoline for highway use was 14.7 billion gallons, down 0.5 percent from fiscal year 2009-10. Jet fuel and diesel fuel taxes declined 4.1 percent. Historical fuel tax data are presented in Appendix Tables 24–26, beginning on page A-43.

Cigarette and tobacco taxes and fees. Revenue from excise taxes on cigarettes and other tobacco products totaled $911,322,000 in 2010-11, falling 1.8 percent from the previous year. For more information on these taxes, see Appendix Tables 30A and 30B, which begin on page A-55.

Insurance Taxes. Insurance taxes were $1,934,385,000 in 2010-11, a 2.6 percent increase. For more information on these taxes, see Appendix Tables 31-33, which begin on page A-58.

Alcoholic beverage tax. The state’s excise tax revenues from alcoholic beverages increased 7.4 percent from 2009-10 levels to total $334,193,000 for the fiscal year. The percentage increase was similar to the national gain in alcohol sales over the same time period. Revenues from beer and wine rose 5.4 percent to $158,324,000. Revenues from distilled spirits jumped 9.2 percent to $175,869,000. Tax rates range from twenty cents a gallon for wine to $3.30 per gallon for distilled spirits. For historical data on taxes, total apparent consumption, and per-capita apparent consumption by major type of beverage, see Appendix Tables 27-29, beginning on page A-50.

Electricity, telephone, and natural gas surcharges. The electrical energy surcharge, levied on the use of electricity in California, produced $56,915,000 in 2010-11, a 6.8 percent increase from the previous year. The natural gas surcharge produced $597,161,000, jumping 12.2 percent. Increases in rates accounted for much of the gain. The emergency telephone users surcharge, which funds the 911 statewide emergency number system, totaled $86,507,000, a decrease of 4.3 percent. Additional detail and historical comparisons are provided in Appendix Tables 34 and 35, beginning on page A-64.

Hazardous substance taxes and other environmental fees. Revenues from hazardous substance taxes and other environmental fees totaled $710,604,000, a 2.0 percent increase from 2009-10. These taxes and fees are used to fund specific environmental programs. Additional detail and historical comparisons are provided in Appendix Tables 36A and 36B, beginning on page A-66.

Property Taxes

Locally collected property taxes on state-assessed properties amounted to $874,658,000, an increase of 4.3 percent. The private railroad car tax, levied on railroad cars owned by firms that do not operate railroads, produced $6,201,000, an increase of 6.6 percent.

The timber yield tax, which is levied when timber is harvested to substitute for an annual value-based property tax, totaled $6,480,000. While this was a 118.4 percent increase, timber tax revenues remain well below those reported prior to the recession. In fiscal year 2006-07, the last fiscal year before the recession, timber yield tax revenues were $15,301,000.

¹ Under AB x3 3, (Statutes of 2009) the state portion of the sales and use tax rate rose from 5 percent to 6 percent, starting April 1, 2009. The higher rate will be in effect until June 30, 2011.

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Comparison of Revenues, 2009-10 and 2010-11

In thousands of dollars

Sales and Use Taxes

Revenue Source 2009-10 2010-11 Percentage Change
State Tax 1,2 $27,672,958 $27,304,440 -1.3
Local revenue fund state sales tax (0.50%) 2,348,068 2,461,759 4.8
Public safety fund sales tax (0.50%) 2,348,068 2,461,610 4.8
Fiscal recovery fund sales tax (0.25%) 1,161,938 1,217,117 4.7
City and county sales tax (0.75%) 3,510,763 3,681,279 4.9
County transportation tax (0.25%) 1,170,171 1,228,097 5.0
Special district taxes 3,953,322 4,161,245 5.3
Other taxes and fees 3 532 2,116 297.9
Totals 42,165,819 42,517,662 0.8

Fuel Taxes and Fees

Revenue Source 2009-10 2010-11 Percentage Change
Gasoline and jet fuel 2 2,671,143 5,205,905 94.9
Diesel and use fuel 4 497,654 477,456 -4.1
Totals 3,168,797 5,683,361 79.4

Revenue Source 2009-10 2010-11 Percentage Change
Alcoholic Beverage Taxes 311,253 334,193 7.4

Cigarette and Tobacco Products Taxes

Revenue Source 2009-10 2010-11 Percentage Change
Cigarette tax 96,184 95,994 -0.2
Cigarette and tobacco products surtax 293,769 285,019 -3.0
Breast cancer research cigarette stamp tax 24,171 23,652 -2.1
California children and families first cigarette stamp tax 512,104 504,963 -1.4
Cigarette and tobacco products licensing fee 1,778 1,694 -4.8
Totals 928,007 911,322 -1.8

Revenue Source 2009-10 2010-11 Percentage Change
Insurance taxes 1,884,992 1,934,385 2.6
Electrical energy surcharge 53,300 56,915 6.8
Natural gas surcharge 532,303 597,161 12.2
Emergency telephone users surcharge 90,349 86,507 -4.3
Hazardous substances taxes and other environmental fees 5 696,453 710,604 2.0

Revenue Source 2009-10 2010-11 Percentage Change
Local taxes on state assessed properties 6 838,728 874,658 4.3
Timber yield tax 2,967 6,480 118.4
Private railroad car tax 5,816 6,201 6.6
Grand Total $50,678,783 $53,719,450 6.0

1 Effective April 2009, the state sales tax rate rose from 5 percent to 6 percent and was in effect until June 30, 2011.

2 Effective July 1, 2010, under the Fuel Tax Swap, purchases and sales of gasoline (excluding aviation gasoline) are exempt from the state portion of the sales and use tax rate (then 6 percent), and a corresponding increase in the excise tax rate on that gasoline was imposed.

3 Effective January 1, 2011 Fees includes collection recovery costs.

4 Includes diesel fuel taxes collected under the International Fuel Tax Agreement (IFTA) implemented on January 1, 1996.

5 Includes revenues from the hazardous substances tax, integrated waste management fee, underground storage tank maintenance fee, tire recycling fee, oil spill prevention and administration fee, oil spill response fee, childhood lead poisoning prevention fee, occupational lead poisoning prevention fee, marine invasive species control fee, water rights fee, and electronic waste recycle fee.

6 Collected by county tax collectors.

Please note: Detail may not add to totals due to rounding.

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Sources of State Revenue, 2010-11

Board of Equalization

Major Taxes and Licenses Revenue (in thousands) Percent Change from 2009-10 Percentage of Total State Revenue
Sales and Use Tax1 30,996,372 -0.64 25.31
Gasoline and Jet Fuel Tax 5,231,599 96.12 4.27
Diesel and Use Fuel Taxes 473,928 -4.48 0.39
Insurance Gross Premium Tax 2,307,022 5.79 1.88
Cigarette and Tobacco Products Tax 905,245 -1.92 0.74
Alcoholic Beverage Tax 334,178 7.37 0.27
Totals, Major Taxes and Licenses 40,248,344 6.55 32.86
Totals, Minor Revenues2 1,457,389 5.74 1.19
Grand Total, BOE 41,705,733 6.52 34.05

Other Agencies

Major Taxes and Licenses Revenue (in thousands) Percent Change from 2009-10 Percentage of Total State Revenue
Personal Income Tax 50,508,441 10.65 41.24
Corporation Tax 9,613,594 5.47 7.85
Motor Vehicle "in lieu" Tax 3,168,597 -4.17 2.59
Trailer Coach Fees "in lieu" Tax 32,503 -21.15 0.03
Motor Vehicle Registration and Other Fees 3,359,359 -0.59 2.74
Horse Racing (Parimutuel) License Fees 13,548 -12.82 0.01
Totals, Major Taxes and Licenses 66,696,042 8.44 54.46
Totals, Minor Revenues 14,077,390 50.75 11.49
Grand Total, Other Agencies 80,773,432 14.02 65.95
Total State Revenue 122,479,165 11.35 100.00

Source: 2012-13 Governor's Budget

1 Includes revenues from the state sales tax, the state disaster relief tax, the local revenue tax, and the fiscal recovery fund sales tax.

2 Includes private railroad car, electrical energy, natural gas, emergency telephone, and environmental fees.

Note: Percentage detail may not add to totals due to rounding.



Sales and use taxes 30,996,372
Fuel Taxes 5,705,527
Other Board revenues 5,003,834
Personal Income tax 50,508,441
Corporation tax 9,613,594
Motor vehicle and trailer taxes 6,560,459
Other revenues 14,090,938
Total 122,479,165
Sources of State Revenue, 2010-11