The Nelson A. Rockefeller Institute of Government

Data Alert 

September 1, 2011

For Immediate Release

           Contact:

Heather Trela (518) 443-5831

This Data Alert is also available at the Institute Web site.  

 

Strong, Broad Growth in State Tax Revenues Continued in the Second Quarter of 2011 

By Lucy Dadayan    

Preliminary tax collection data for the April-June quarter of 2011 show further strength in overall state tax collections as well as for personal income tax and sales tax revenue. However, total tax revenue collections are still below peak levels. We will provide a full report on the April-June quarter after Census Bureau data for the quarter are available.

The Rockefeller Institute's compilation of data from 46 early reporting states shows collections from major tax sources increased by 11.4 percent in nominal terms in the second quarter of 2011 compared to the same quarter of 2010. This is the strongest year-over-year growth since the second quarter of 2005. Tax collections now have been rising for six straight quarters, following five quarters of declines. However, revenues were still 7.8 percent lower in the second quarter of 2011 than in the same period three years ago.

All states reported growth in personal income taxes during the quarter. All but four saw gains in sales-tax revenues, and only New Hampshire reported a decline in overall collections. States' personal income taxes represented a nearly $10.7 billion or 16.5 percent gain, and sales taxes a $3.1 billion or 5.9 percent gain for the period.

Personal income and corporate tax revenues increased by 16.5 percent each, while sales tax showed growth of 5.9 percent (see Table 1).

Table 2 shows state-by-state figures for the change in major tax revenues during the second quarter of 2011 compared to the same quarter a year earlier. . In terms of dollars, New York and California reported the largest increases in overall tax collections in the second quarter of 2011, with gains of $2.9 billion and $2.3 billion respectively. According to preliminary data, 21 states reported double-digit growth in total tax collections. Thirty states reported double-digit growth in personal income taxes, 24 states in corporate income tax collections, and 12 states in sales tax revenues.  

The strong and continuing growth in tax collections for the last six quarters is an indication that revenue conditions are slowly recovering for most state governments. Now that most states have closed the books for fiscal year 2011, preliminary figures show 8.4 percent growth for the nation in total tax revenues during the fiscal year. Every state except New Hampshire reported growth in overall tax collections for the fiscal 2011 compared to fiscal 2010.

Table 1: All Major Taxes Showed Strong Growth in the Second Quarter of 2011

Percent Change in State Tax Collections vs. Same Quarter Year Ago

2007 Q1

8.5

14.8

3.1

5.2

2007 Q2

9.2

1.7

3.5

5.5

2007 Q3

7.0

(4.3)

(0.7)

3.1

2007 Q4

3.8

(14.5)

4.0

3.6

2008 Q1

4.8

(1.4)

0.7

2.6

2008 Q2

8.1

(7.0)

1.0

5.4

2008 Q3

0.9

(13.2)

4.7

2.8

2008 Q4

(1.9)

(23.0)

(5.3)

(4.0)

2009 Q1

(19.4)

(20.2)

(8.4)

(12.2)

2009 Q2

(27.7)

3.0

(9.5)

(16.3)

2009 Q3

(11.5)

(21.3)

(10.1)

(11.0)

2009 Q4

(4.1)

0.7

(5.4)

(3.3)

2010 Q1

3.6

0.6

0.1

3.3

2010 Q2

1.3

(19.0)

5.7

1.9

2010 Q3

5.4

0.5

4.2

5.1

2010 Q4

10.5

18.1

5.7

7.9

2011 Q1

12.8

5.1

6.3

9.3

2011 Q2 (preliminary)

16.5

16.5

5.9

11.4



Table 2: Percent Change in State Tax Revenue

Quarterly Tax Revenue by Major Tax, Early Reporting States
April-June 2010 to 2011, Percent change


PIT

CIT

Sales

Total

United States

16.5

16.5

5.9

11.4

New England

19.0

14.5

2.4

11.4

Connecticut

15.5

69.0

8.0

14.4

Maine

7.6

16.9

(0.2)

4.6

Massachusetts

22.6

10.3

(0.4)

14.7

New Hampshire

NA

(14.4)

NA

(10.0)

Rhode Island

20.6

(22.2)

(0.5)

6.0

Vermont

23.3

4.0

8.2

6.0

Mid-Atlantic

18.0

26.0

8.3

14.7

Delaware

23.1

98.4

NA

15.8

Maryland

0.0

2.1

0.6

1.1

New Jersey

ND

ND

ND

ND

New York

26.3

25.3

7.0

21.1

Pennsylvania

5.2

32.0

13.2

9.1

Great Lakes

31.6

21.7

5.6

16.2

Illinois

67.9

51.2

6.7

37.7

Indiana

23.0

3.1

5.6

9.3

Michigan

24.8

20.7

6.7

11.7

Ohio

16.9

12.3

5.6

11.0

Wisconsin

11.1

(5.6)

1.8

5.1

Plains

13.4

26.8

10.5

11.6

Iowa

10.1

46.5

0.6

8.5

Kansas

25.7

21.2

25.5

18.7

Minnesota

ND

ND

ND

ND

Missouri

1.1

6.6

2.3

1.3

Nebraska

27.7

37.9

13.2

21.1

North Dakota

83.8

71.9

31.3

56.1

South Dakota

NA

NA

13.1

12.6

Southeast

13.8

9.2

3.7

7.4

Alabama

18.2

0.4

2.4

8.4

Arkansas

10.7

32.3

2.7

9.8

Florida

NA

5.4

4.7

0.6

Georgia

5.2

(26.4)

5.8

3.0

Kentucky

13.5

37.3

1.7

9.6

Louisiana

14.0

278.6

9.6

18.2

Mississippi

7.1

13.3

3.5

3.6

North Carolina

23.5

12.9

(0.7)

18.7

South Carolina

11.8

(14.6)

2.8

6.6

Tennessee

NA

6.9

5.0

3.3

Virginia

14.2

(10.4)

1.6

7.1

West Virginia

12.5

5.9

2.1

1.2

Southwest

27.1

10.8

12.8

10.8

Arizona

33.9

15.8

35.5

15.1

New Mexico

27.4

(47.2)

10.7

7.5

Oklahoma

19.3

58.9

10.4

15.9

Texas

NA

NA

9.8

9.7

Rocky Mountain

16.2

20.6

8.2

9.6

Colorado

12.3

7.4

5.8

10.1

Idaho

9.0

72.4

1.7

7.9

Montana

83.7

47.8

NA

4.0

Utah

12.1

9.7

16.5

13.0

Wyoming

NA

NA

10.5

5.5

Far West

8.0

14.6

2.7

10.8

Alaska

NA

286.5

NA

99.0

California

7.4

12.2

1.1

7.2

Hawaii

ND

ND

ND

ND

Nevada

ND

ND

ND

ND

Oregon

14.0

4.4

NA

12.7

Washington

NA

NA

11.2

13.4

     Source: Individual state data, analysis by Rockefeller Institute.   

     Notes:   NA - not applicable; ND - no data.


 

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About the Rockefeller Institute of Government

The Nelson A. Rockefeller Institute of Government, at the University at Albany, is the public policy research arm of the State University of New York. The Institute conducts fiscal and programmatic research on American state and local governments. Visit our Web site at www.rockinst.org

  

 

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