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Preliminary tax collection data for the January-March quarter of 2011 show strong growth in overall state tax collections as well as for personal income tax and sales tax revenue. However, tax revenue collections are still below peak levels. We will provide a full report on the January-March quarter after Census Bureau data for the quarter are available.
The Rockefeller Institute's compilation of data from 47 early reporting states shows collections from major tax sources increased by 9.1 percent in nominal terms in the first quarter of 2011 compared to the same quarter of 2010. That represented the third consecutive quarter of increasing strength in revenues. Tax collections now have been rising for five straight quarters, following five quarters of declines, but were still 3.1 percent lower in early 2011 than in the same period three years ago.
Virtually every state reported growth in overall tax collections as well as in tax collections from two major sources: personal income tax and sales tax. States' personal income taxes represented a nearly $6.7 billion or 12.4 percent gain, and sales taxes a $2.9 billion or 5.6 percent gain for the period.
Personal income tax revenues increased by 12.4 percent for the nation compared to the same quarter of 2011, corporate income tax increased by 6.9 percent and sales tax showed a 5.6 percent growth (see Table 1). The growth in personal income tax, as well as overall tax collections, is the strongest since mid-2006.
Table 2 shows state-by-state figures for the percent change for major tax revenues in the first quarter of 2011 compared to the same quarter of 2010. In terms of dollars, California reported the largest increase in overall tax collections in the first quarter of 2011, where revenue collections rose by $1.4 billion or 5.6 percent. Illinois and New York also reported large increases in overall tax collections in terms of dollars. According to preliminary data, 28 states reported double digit growth in personal income tax collections, 20 states in corporate income tax collections, 12 states in sales tax collections and 25 states in total tax collections.
The strong and consecutive growth in tax collections is an indication that revenue conditions are slowly improving for most state governments. However, revenues are still below the peak levels in most states.
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Table 1: All Major Taxes Showed Strong Growth in the First Quarter of 2011
Percent Change in State Tax Collections vs. Same Quarter Year Ago
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Quarter
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PIT
|
CIT
|
Sales
|
Total
| |
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)
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2009 Q1
|
(19.4)
|
(20.2)
|
(8.4)
|
(12.2)
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2009 Q2
|
(28.0)
|
1.5
|
(9.4)
|
(16.8)
| |
2009 Q3
|
(11.9)
|
(22.1)
|
(10.0)
|
(11.3)
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2009 Q4
|
(4.5)
|
(0.6)
|
(5.4)
|
(3.9)
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2010 Q1
|
3.1
|
(1.2)
|
0.1
|
2.6
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2010 Q2
|
1.2
|
(16.0)
|
6.0
|
2.2
| |
2010 Q3
|
5.3
|
1.2
|
4.6
|
4.9
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2010 Q4
|
10.6
|
17.2
|
5.6
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7.8
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2011 Q1 (preliminary)
|
12.4
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6.9
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5.6
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9.1
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Table 2: Percent Change in State Tax Revenue
Quarterly Tax Revenue by Major Tax, Early Reporting States
January-March 2010 to 2011, Percent change
| |
|
PIT
|
CIT
|
Sales
|
Total
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United States
|
12.4
|
6.9
|
5.6
|
9.1
| |
New England
|
11.9
|
17.5
|
5.6
|
8.0
| |
Connecticut
|
13.4
|
31.5
|
10.5
|
11.1
| |
Maine
|
21.1
|
(0.6)
|
4.4
|
11.4
| |
Massachusetts
|
10.1
|
21.3
|
3.2
|
6.5
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New Hampshire
|
NA
|
(2.4)
|
NA
|
(0.1)
| |
Rhode Island
|
7.1
|
8.3
|
2.0
|
4.6
| |
Vermont
|
25.3
|
(6.2)
|
3.9
|
12.3
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Mid-Atlantic
|
5.1
|
7.5
|
7.5
|
5.5
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Delaware
|
22.9
|
172.4
|
NA
|
20.7
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Maryland
|
3.7
|
(0.2)
|
5.8
|
4.2
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New Jersey
|
11.7
|
(15.2)
|
4.5
|
5.9
| |
New York
|
3.2
|
15.3
|
12.7
|
6.2
| |
Pennsylvania
|
7.5
|
3.9
|
4.2
|
2.9
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Great Lakes
|
33.7
|
12.7
|
7.1
|
15.1
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Illinois
|
40.9
|
1.4
|
9.8
|
22.2
| |
Indiana
|
17.8
|
270.2
|
6.5
|
10.3
| |
Michigan
|
208.8
|
14.5
|
6.6
|
14.0
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Ohio
|
18.5
|
25.5
|
7.8
|
11.6
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Wisconsin
|
33.0
|
(1.7)
|
3.9
|
13.3
| |
Plains
|
10.6
|
25.3
|
8.6
|
9.7
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Iowa
|
9.5
|
(15.5)
|
6.9
|
7.6
| |
Kansas
|
1.0
|
66.8
|
23.9
|
10.8
| |
Minnesota
|
16.9
|
30.6
|
3.6
|
11.9
| |
Missouri
|
3.5
|
112.9
|
1.0
|
2.4
| |
Nebraska
|
18.7
|
(3.9)
|
4.2
|
8.1
| |
North Dakota
|
24.8
|
2.7
|
38.1
|
39.4
| |
South Dakota
|
NA
|
NA
|
16.1
|
7.0
| |
Southeast
|
13.5
|
11.4
|
4.9
|
10.1
| |
Alabama
|
6.1
|
(26.0)
|
4.2
|
3.1
| |
Arkansas
|
17.4
|
1.6
|
0.7
|
3.1
| |
Florida
|
NA
|
11.1
|
5.3
|
6.3
| |
Georgia
|
19.2
|
34.6
|
8.0
|
13.1
| |
Kentucky
|
10.6
|
3.7
|
3.6
|
6.5
| |
Louisiana
|
41.9
|
322.1
|
15.2
|
14.6
| |
Mississippi
|
(2.1)
|
14.8
|
2.6
|
3.4
| |
North Carolina
|
6.6
|
(26.0)
|
(1.5)
|
20.3
| |
South Carolina
|
75.3
|
140.1
|
2.8
|
17.2
| |
Tennessee
|
NA
|
(8.8)
|
5.6
|
5.1
| |
Virginia
|
13.2
|
125.1
|
8.4
|
13.1
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West Virginia
|
10.3
|
377.8
|
4.8
|
17.2
| |
Southwest
|
14.5
|
40.9
|
13.4
|
8.7
| |
Arizona
|
27.5
|
(14.6)
|
32.3
|
9.6
| |
New Mexico
|
ND
|
ND
|
ND
|
ND
| |
Oklahoma
|
2.3
|
204.5
|
11.2
|
14.4
| |
Texas
|
NA
|
NA
|
10.6
|
7.8
| |
Rocky Mountain
|
17.5
|
7.7
|
10.0
|
11.7
| |
Colorado
|
18.2
|
(22.5)
|
10.2
|
12.9
| |
Idaho
|
28.1
|
262.2
|
1.0
|
11.2
| |
Montana
|
13.6
|
49.6
|
NA
|
6.6
| |
Utah
|
12.5
|
(12.9)
|
13.5
|
11.9
| |
Wyoming
|
NA
|
NA
|
21.3
|
11.4
| |
Far West
|
12.8
|
(8.1)
|
(2.3)
|
8.8
| |
Alaska
|
NA
|
(57.8)
|
NA
|
215.7
| |
California
|
12.1
|
(7.8)
|
(3.1)
|
5.6
| |
Hawaii
|
ND
|
ND
|
ND
|
ND
| |
Nevada
|
NA
|
NA
|
ND
|
ND
| |
Oregon
|
20.6
|
12.9
|
NA
|
19.2
| |
Washington
|
NA
|
NA
|
1.3
|
5.3
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Source: Individual state data, analysis by Rockefeller Institute.
Notes: NA - not applicable; ND - no data.
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