LOS ANGELES (CBS) — California’s economy will likely improve if Facebook stock goes public.

Sources say the world’s largest social networking site is preparing for an initial public stock offering.

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If so, the California Treasury would take in hundreds of millions of dollars in capital gains taxes from Facebook investors and employees.

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Analysts say the “Facebook effect” would mean a big boost to the state budget.

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However, the benefits might not be seen for a couple of years.