State tax revenues show continued, steady growth.
State tax revenues grew by 5.8 percent in the first quarter of 2015, according to a State Revenue Report released in September 2015 by the Rockefeller Institute of Government. The report includes an analysis of the states' personal income tax revenue forecasts and a discussion of motor fuel taxes. All major sources of tax revenues showed solid growth during this period: Personal tax collections grew by 7.1 percent, corporate tax revenues by 3.3 percent, sales taxes by 5.2 percent, and motor fuels by 4.4 percent.
Total state tax collections for fiscal 2015, which ended in June in most states, maintained positive upward trend. For the first three quarters of the fiscal year, state tax revenue increased by 5.3 percent. (The institute will report on the final quarter when full data are available.)
Preliminary figures for the second quarter of calendar year 2015 (the final quarter of fiscal year 2015 in most states) indicate growth in total state tax collections of 7.6 percent and particularly strong growth in personal income tax collections--14.3 percent. This likely reflects the impact of the strong stock market in 2014 on final tax returns and estimated payments in April, according to the report.
State revenue forecasts call for a slowdown in total personal income tax growth to 2.7 percent in fiscal 2016, from the 5.1 percent the states estimated for fiscal 2015. These forecasts do not generally reflect the steep drop in stock markets in September 2015, which could adversely affect state income tax revenues.
The report is available at www.rockinst.org.
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|Title Annotation:||News & Numbers|
|Publication:||Government Finance Review|
|Date:||Oct 1, 2015|
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