Uber IPO Could Be Part of a $700 Million Windfall for California
(Bloomberg) -- California is benefiting from the spate of technology initial public offerings.
Governor Gavin Newsom’s revised budget for the fiscal year that begins July 1 projects the state will reap about $700 million of taxes from such stock sales, up from $200 million estimated when he unveiled his spending plan in early January.
Compared with earlier forecasts, the latest projection of personal income-tax collections is $1.8 billion higher for the coming year because of the strong stock market. Californians are expected to pocket $156 billion of capital gains this year, an increase from the earlier prediction of $138 billion.
Ride-hailing giant Uber Technologies Inc. is due to price shares in its long-awaited initial public offering after the market closes Thursday, following a stock sale this year by rival Lyft Inc. San Francisco-based Pinterest Inc. also went public this year.
When Facebook went public in 2012, the state figured it would take in as much as $1.5 billion in additional revenue when company executives exercised options and paid capital-gains taxes.
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