Taxes

California’s tax revenue soars, fueled by booming tech industry

Rising pay in Silicon Valley likely explains most of the increase.
People talk near a Meta sign outside of the company’s headquarters in Menlo Park, Calif., March 7, 2023. (AP Photo/Jeff Chiu, File)

California has collected $1.8 billion more tax dollars than expected since July 1, a 7% bump mostly explained by rising tech worker pay as Silicon Valley chases breakthroughs in artificial intelligence.

Higher-than-expected tax collections could narrow the $17 billion budget gap fiscal analysts project for next year, said Brian Uhler, a deputy analyst at the Legislative Analyst’s Office, a nonpartisan agency that advises the Legislature.

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