In 2009, California state tax revenue was down $16.4 billion or 14% when compared to the previous year. Even though the state legislature in Sacramento and Governor Arnold Schwarzenegger approved the largest tax increase in state history, including a major hike in income taxes, the overall tax revenue declined by over $100 million dollars. These declines included a 20.4% decline in individual income tax revenue and a 19.5% decline in corporate tax revenue.
As a direct result of the decline in tax revenue, the Collections Officers for the California Franchise Tax Board have been directed to go after delinquent tax bills with vigor and focus. If you or your business owe back taxes to the state of California, it is essential that you take action before a dire situation grows even worse.
Why have the California Collections Officers been directed to go after back taxes with such renewed vigor? To begin with, California already was experiencing a budget crisis before the new tax deficits arose. In addition, as Lisa Blumerman, chief of the Census Bureau’s Governments Division noted, “The 2009 state tax collection data is the first component of government finance data released each fiscal year and provides an important indicator of the fiscal condition of state governments.”
With the ongoing recession combined with the lack of tax revenue, California’s 2010 budget has a $6.6 billion shortfall and faces a total $19.9 billion deficit through next year. The California Revenue Officers will be scouring the books to find both individuals and businesses with significant back tax bills to go after in order to make up the gap. Before you get the knock on the door that signifies a major threat to your future financial security, contact the Tax Resolution Institute. We can transform a tax crisis into a program of true tax relief. If you need tax resolution services, feel free to call the Tax Resolution Institute at 800-401-5926 or fill out our tax resolution form.