General Fund Revenue
Insurance Tax

Most insurance written in California is subject to a 2.35-percent gross premiums tax. This premium tax takes the place of all other state and local taxes except those on real property and motor vehicles. In general, the basis of the tax is the amount of "gross premiums" received, less return premiums.


INSURANCE TAX REVENUE
(IN BILLIONS)
 2006-07 (Preliminary) $2.178

2007-08 (Forecast) $2.075

2008-09 (Forecast) $2.276

The Department of Finance conducts an annual survey to project insurance premium growth. Responses were received this year from a sample representing more than 40 percent of the dollar value of premiums written in California.

In 2006, $124.8 billion in taxable premiums were reported, an increase of 5.4 percent over 2005. The most recent survey indicates that total premiums will increase by 4.1 percent and 5.3 percent in 2007 and 2008, respectively. As reforms in workers' compensation insurance continue to take effect, taxable premiums from workers' compensation insurance continue to decrease: survey respondents reported declines of 27 percent in 2007 and 9 percent in 2008.
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CHAPTER HIGHLIGHTS for Revenue Estimates Back to Top

 General Fund Revenue
  Personal Income Tax
  Sales and Use Tax
  Corporation Tax
 image of black pointing arrowInsurance Tax
  Alcoholic Beverage Taxes
  Cigarette Tax
  Property Taxes
  Estate/Inheritance/Gift Taxes
  Other Revenues
 Special Fund Revenue
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Revenue Estimates (pdf * - 540K) -
Provides this entire Revenue Estimates Chapter in pdf format.

SCHEDULE 2 - Summary of State Tax Collections (pdf * - 113K) -
State Tax Collections per capita and per $100 of personal income.

SCHEDULE 3 - Comparative Yield of State Taxes (pdf * - 116K) -
Revenues for Major State Taxes from 1970-71 through 2008-09.

SCHEDULE 8 - Comparative Statement of Revenues (pdf * - 18K) -
Detail of General and special fund revenues by source for the past, current, and budget years within the following categories: (1) major taxes and licenses, (2) minor revenues, and (3) transfers and loans.