California is expected to return to normal revenue this week, with some of the expected revenue from its tax and other levies expected to come from its sales tax and excise tax hikes, according to a report from the California Public Policy Institute.
The institute said Thursday that the state expects to post revenue of $4.9 billion in 2018, up 3.7% from the year prior.
The state has a $4 billion surplus this year, and expects revenue to increase to $5.9 bn, up 4.5%.
The state also expects to record a surplus in 2019, the institute said.
The regs also aim to lower the state’s $4,500 annual sales tax from 9% to 5%, reduce its $5,500 income tax rate to 5% from 6%, and eliminate its $10,000 personal property tax.
California is also aiming to increase sales tax revenue to $3.3 billion by 2020.
The state is planning to increase its corporate income tax by 5% to 7% in 2018.