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Tuesday, February 23, 2010

State Tax Revenues Fall for Fifth Consecutive Quarter

The Nelson A. Rockefeller Institute of Government reported today that state tax revenues fell for the fifth consecutive quarter, down 4.1% for the final quarter of 2009:

  • Corporate income tax:  -5.8%
  • Personal income tax:   -4.5%
  • Sales tax:  -4.2%

The decline was biggest in the Southwest (-18.1%); tax revenues increased 0.5% in New England. State tax revenues declined in 39 states:

Rockefeller
 

Here are the states with the ten biggest declines in tax revenues, as well as the states with the largest inclreases/smalles declines in tax revenues:

1

Oklahoma

-26.9%

2

Arizona

-17.1%

3

Texas

-16.8%

4

Alaska

-14.5%

5

Wyoming

-14.5%

6

Georgia

-12.8%

7

Montana

-11.5%

8

Missouri

-9.3%

9

Colorado

-9.1%

10

Idaho

-8.8%

United States

-4.1%

1

North Carolina

+11.4%

2

South Dakota

+6.6%

3

New Hampshire

+3.6%

4

Wisconsin

+3.4%

5

Massachusetts

+2.8%

6

California

+1.5%

7

Arkansas

+0.5%

8

Alabama

-0.4%

9

Virginia

-0.4%

10

Iowa

-0.6%

Employment declined in all fifty states.  (Hat Tip: Ann Murphy.)

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Comments

State tax revenues in New Hampshire have indeed increased, but not nearly as much as the present tax-and-spend legislature had hoped, leaving a widening gap between revenues and spending. The state is still trying to deal with the budget deficit from the previous budget and have been stymied in their efforts to siphon off private funds from a medical malpractice insurance agency created by, but not funded by, the state.

Posted by: DCE | Feb 24, 2010 5:32:46 AM

For some reason, socialists think that the people they want to tax cannot simply go elsewhere. They never learn.

Posted by: Toads | Feb 24, 2010 3:10:07 AM

I live in DeKalb County, GA. Here, the CEO, Burrell Ellis, is proposing an 11% property tax increase to cover budget shortfalls. If newspaper reports are to be believed, the usual suspects are shrieking that houses will burn, criminals will roam the streets, children will go uneducated, and flesh-eating zombies will drag us all down to hell, if he doesn't get his way.

If I had a monopoly on force, I guess I'd go for the gun too, every time I had a budget crisis.

He is currently being opposed by the County Commission, which is suggesting a range of other measures, up to and including laying off county employees.

Posted by: Patrick Carroll | Feb 23, 2010 9:09:03 PM

this doesn't help to know because if a state was -20% from '08 to '09 versus no change '08 to '09, that is necessary to put the most recent year's change in context. We need a 2-year or 3-year change. If California dropped like a rock from '08 to '09, that is vitally important to have any idea whether the recent year 'no change' is actually good or bad.

Posted by: steve bourg | Feb 23, 2010 5:31:58 PM

What the heck goes on in North Carolina? Up 11%??

Posted by: jaed | Feb 23, 2010 12:30:23 PM

It is probably useful to separate the Oil Patch States (AK, OK, TX) and the mineral states (MT, ID, CO) as they get big swings in revenue based on extraction taxes. The New England states all passed some kind of tax/fee increases this year (but are still in horrible deficit).

But the general conclusion is still valid, all levels of government are going to hurt.

Posted by: DirtyJobsGuy | Feb 23, 2010 12:19:06 PM