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Saturday, August 28, 2010

Where Do State and Local Governments Get Their Tax Revenue?

Tax Foundation, Where Do State and Local Governments Get Their Tax Revenue?:

 

Property

Sales-Gen

Sales-Spec

Individual

Business

License

U.S.

30.8%

22.9%

10.8%

22.9%

4.3%

8.2%

AL

16.4%

29.5%

17.3%

22.7%

3.7%

10.3%

AK

11.0%

2.2%

3.6%

0.0%

10.1%

73.1%

AZ

29.2%

39.6%

8.7%

14.8%

3.4%

4.3%

AR

15.5%

39.5%

11.9%

24.9%

3.6%

4.4%

CA

28.4%

22.1%

6.7%

30.0%

6.4%

6.5%

CO

31.2%

26.8%

7.8%

25.8%

2.6%

5.8%

CT

36.0%

15.3%

9.8%

32.5%

2.6%

3.8%

DE

16.3%

0.0%

13.2%

28.7%

8.3%

33.5%

FL

41.3%

31.2%

15.8%

0.0%

3.0%

8.7%

GA

30.4%

29.1%

8.6%

26.3%

2.8%

2.9%

HI

18.6%

38.9%

12.6%

22.9%

1.6%

5.4%

ID

23.9%

27.3%

8.6%

29.1%

3.9%

7.2%

IL

36.8%

16.1%

17.2%

17.8%

5.4%

6.6%

IN

30.2%

25.0%

12.0%

23.5%

4.0%

5.3%

IA

32.2%

21.1%

11.2%

25.4%

3.0%

7.1%

KS

31.0%

25.8%

8.7%

24.8%

4.4%

5.3%

KY

19.6%

20.3%

16.8%

32.0%

4.6%

6.6%

LA

15.8%

39.6%

13.3%

17.7%

3.9%

9.7%

ME

36.4%

17.9%

10.9%

26.3%

3.1%

5.4%

MD

23.9%

13.6%

11.1%

40.4%

2.7%

8.4%

MA.

34.3%

12.1%

6.3%

36.8%

6.4%

4.2%

MI

37.5%

21.8%

10.6%

20.3%

4.7%

5.0%

MN

26.8%

18.9%

12.3%

31.5%

4.2%

6.3%

MS

25.0%

34.0%

13.0%

16.8%

4.2%

7.0%

MO

27.6%

25.4%

11.2%

27.5%

1.9%

6.3%

MT

34.1%

0.0%

15.9%

25.2%

4.7%

20.1%

NE

33.1%

25.0%

8.1%

23.0%

3.1%

7.7%

NV

30.4%

31.9%

23.9%

0.0%

0.0%

13.9%

NH

61.6%

0.0%

16.0%

2.4%

12.4%

7.7%

NJ

42.2%

16.6%

6.9%

23.4%

5.2%

5.6%

NM

14.5%

35.7%

10.5%

15.7%

4.6%

19.0%

NY

28.3%

16.7%

7.9%

33.6%

8.2%

5.5%

NC

23.7%

21.8%

11.8%

33.1%

3.6%

6.0%

ND

23.3%

19.6%

11.3%

10.0%

5.1%

30.7%

OH

29.1%

20.4%

11.1%

30.0%

1.9%

7.5%

OK

17.2%

29.3%

9.1%

22.6%

2.9%

18.8%

OR

34.0%

0.0%

8.8%

39.7%

4.3%

13.2%

PA

28.7%

17.0%

12.4%

26.5%

4.1%

11.3%

RI

42.3%

17.4%

11.2%

22.4%

3.0%

3.6%

SC

32.7%

24.1%

10.8%

21.8%

2.4%

8.3%

SD

34.3%

40.1%

14.3%

0.0%

2.8%

8.4%

TN

24.6%

46.3%

11.6%

1.5%

5.3%

10.7%

TX

38.8%

31.3%

15.5%

0.0%

0.0%

14.3%

UT

23.7%

27.9%

10.4%

27.7%

4.2%

6.2%

VT

40.1%

11.7%

17.8%

21.2%

2.9%

6.3%

VA

32.3%

14.5%

11.7%

30.9%

2.4%

8.1%

WA

27.3%

48.0%

14.6%

0.0%

0.0%

10.0%

WV

19.3%

17.3%

19.8%

23.6%

8.4%

11.7%

WI

36.2%

18.7%

8.7%

27.2%

3.5%

5.5%

WY

34.1%

32.9%

4.4%

0.0%

0.0%

28.6%

DC

32.0%

16.6%

9.1%

25.1%

7.8%

9.4%

 

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Comments

Two columns listing 'sales'. I assume one of them is something else.

For WA, data is clearly incorrect. I am a business owner and pay a quarterly 1.8% Business and Occupancy tax on my GROSS income as a service provider. That's right off the top.

B&O tax is a large source of WA state revenue.

Posted by: bob | Aug 28, 2010 9:23:49 AM

First column is general sales tax, second is selective sales tax.
(at the link)

Posted by: JayDee | Aug 29, 2010 7:28:24 AM

Two "Sales" columns?

Posted by: BlogDog | Aug 29, 2010 7:29:25 AM

bob, the first column is general sales tax and the second is selective sales tax (tobacco, gas, etc, from what I understand). If you follow the link to the actual report, the formatting is correct.

Posted by: pdm | Aug 29, 2010 7:33:09 AM

it would be interesting to see the analysis other ways such as state spending as a percentage of personal income plus taxed corporate profits or other such. A particular state can appear attractive if one looks at say income tax; e.g. none or one of the other metrics in this presentation. States get their money somewhere. The issue is still spending.

Posted by: billsv | Aug 29, 2010 7:44:09 AM

Chart is misleading on Washington state because it shows Zero for business tax, but that is because this is business INCOME tax on profit. Washington has a Business and Occupation (B&O) Tax that charges a tax percentage based on type of business whether or not the business is profitable. Since this weird system is unique and rates look low, Tax Foundation always gets it wrong.

Posted by: Gary | Aug 29, 2010 7:49:05 AM

I think it would be really interesting to see the areas where these taxed monies were spent in a side-by-side comparison. In Texas, the property owners apparently support the government in a huge way but I'm willing to be that most of that money is then used to support non-working, non-property owners, even non-citizens. Is "income" which is grabbed from the productive part of society and re-christened "income, redistributed" really something we want our politicians to handle with impunity? All "income, redistributed" should be reported on IRS Form 1099-GOV!

Posted by: SenatorMark4 | Aug 29, 2010 10:31:11 AM

Where they get the revenue is one thing, how they spend it completely another. When there is no accountability, you (at all levels of government or any institution) get collusion among legislative and executive branch with those on the payroll.

They jack up salaries and benefits both current and post-retirement. Their pie gets progressively bigger as the politicians pork up budgets and then staff programs with more and more overpaid hacks. They all wink at each other as the public treasury is drained so that they they "need more revenue". And damn if we don't give it to them!

This merry-go-round has been left on for generations now, especially since Kennedy allowed 'organization' of public workers. Government could probably be a third of its current size and be more effective than the morasses we live in at all levels of government. But not with this game going on. It blithely accepts that this is how government works. After all, its not their money. Why shouldn't they do this?

Why is anyone surprised that city managers (much less US legislators) make $1,500,000 and have contractual pensions that keep them at this level for the rest of their lives? It doesn't even matter if they are fired because the (inviolable) pension contracts just kick in early.

Robert Fuller
Hopewell, NJ

Posted by: Robert | Aug 29, 2010 10:32:16 AM

Part of the confusion here is that the columns shown here are mislabeled. The "Business" column is actually noted in the link as "Corporate Income Tax". The B&O taxes were obviously included in the "Licensing and Other" category (note that WA has a relatively high 10% L&O).

Posted by: phwest | Aug 30, 2010 5:07:42 AM

Why is the business corporate tax so much lower than all of the other taxes? If businesses are treated as entities separate from their people, why can't the entity be taxed like a person is? Are there really so many businesses that can move between states?

Posted by: great white north | Aug 30, 2010 7:15:51 AM