WASHINGTON Dec 13 State tax revenues have grown
for more than two years, but they are still suffering the
effects of the 2007-2009 recession, according to a report
released by the Rockefeller Institute of Government on Thursday.
Using preliminary data, the New York research group found
that collection from major taxes increased in 47 states in the
third quarter of 2012 from a year before, marking the 11th
The recession caused states' revenues to plummet to lows not
seen in decades over the course of five quarters. That forced
almost all states to make emergency spending cuts, raise taxes,
borrow and turn to the federal government for help just as the
newly jobless and homeless increased demand for their services.
While revenues have been growing, the increases have been
small. According to the institute, revenues "are still far below
where they would have been in the absence of the Great
Recession." Moreover, when adjusted for inflation, revenues are
5 percent below the peaks they reached in fiscal 2008, the last
year before the recession devastated their budgets.
Rockefeller found that personal income tax collections were
up 4.5 percent in the quarter ending in September, and sales
taxes grew 3.1 percent. Corporate income taxes, which provide
only a sliver of revenues, fell 0.5 percent.
In the third quarter of 2011, personal income tax
collections surged 10.2 percent.
Delaware had the largest increases in overall tax
collections in the third quarter, 11.7 percent, followed by
Colorado, 10.3 percent.