California Sales, Corporate Income Tax Slow on Economic Anxiety

California’s revenue from corporate income tax and sales tax is missing earlier projections, the state Legislative Analyst’s Office said.

The office delivered its annual fiscal outlook Wednesday, announcing that the state’s collections are up $11 billion thanks to a thriving artificial intelligence industry.

Personal income tax collections are booming, the report said, which analysts attributed to growth in the AI sector, including soaring stock compensation for high-salaried workers at major tech companies. But that surge is not enough to offset sales and corporate income tax revenue remaining flat as the state heads toward a larger budget gap, analysts warned.

“What ...