California’s ability to plan its state budget will be impacted by the wildfires ravaging the Los Angeles area.
Shortly after deadly blazes began marching through the communities of Altadena in Los Angeles County and the Pacific Palisades neighborhood of Los Angeles, Gov.
“California is taking action to provide relief to state taxpayers affected by these devastating fires,” Gov. Gavin Newsom said in a statement. “The people in Los Angeles County have experienced unimaginable tragedy, and the state will continue to do everything possible to help these communities.”
The decision has echoes of 2023, when emergency declarations following widespread winter storms and flooding led to postponed income tax deadlines for 55 of California’s 58 counties.
It meant the state had to pass a budget in July that year without knowing how much income tax revenue it would have coming. Its estimates were so far off, it started the next budget year with a
At that time, the Newsom administration estimated that would delay collection for
This year’s tax deadline delay only applies to one county — but it’s the nation’s most populous.
With 10 million residents, Los Angeles County represents a quarter of the state’s population, which means that state finance officials will have incomplete data on April’s income tax receipts when Newsom updates his budget proposal in May.
“It’s a large chunk, but not the whole state,” said Karen Krop, a Fitch senior director.
“There are a large number of taxpayers, and some are very wealthy,” Krop said.
The two largest fires in Southern California have killed at least 24 people and destroyed more than 12,300 structures, the California Department of Forestry and Fire Protection r