State Tax Revenues Continue to Surge

The Nelson A. Rockefeller Institute of Government has issued a 16-page report, State Revenue Growth Continues in Most States, detailing a 13.3% surge in state tax revenues in the second quarter of 2005 compared with 2004.  The chart below lists the states with the five largest and the five smallest percentage increases:

Change in Second Quarter State Tax Revenues
State	Change from 2004
Alaska	42.9%
Vermont	31.0%
New Jersey	28.3%
North Carolina	27.7%
West Virginia	25.3%
U.S. Average	13.3%
Georgia	2.0%
Washington	1.6%
South Dakota	0.3%
Maine	0.2%
New Mexico	(5.5%)

The increases in other large states were:

• California:  17.3%
• Florida:  9.1%
• Illinois:  10.2%
• New York:  17.0%
• Ohio:  9.0%
• Pennsylvania:  6.7%

State corporate income tax revenues had the biggest increase, rising 22.8% in the quarter (personal income tax revenues rose 18.4% and sales tax revenues increased 7.9%).