State Tax Collections Increase by 9.1% in the First Quarter, Largest Annual Gain in Almost Five Years
The Rockefeller Institute of Government reported this week that tax collections by state governments are showing strong improvements in the first quarter of this year compared to the same quarter of 2010. Overall, tax collections increased by 9.1% in the first quarter of 2011 (based on preliminary tax collection data from 47 early reporting states), which is the largest increase since the second quarter of 2006, almost five years ago (see chart above). The largest gain in the quarter came from a 12.4% increase in personal income tax collections, followed by increases in corporate income taxes (6.9%) and sales taxes (5.6%).
1. Unexpected state revenue in California leaps to $6.6 billion. (HT: Steve Bartin)