Taxes & Revenue

 

Information regarding state tax policy and recent revenue performance. State revenue is generated through a variety of sources, including both general fund taxes and other taxes and fees earmarked for special purposes or specific funds. Personal income and sales taxes comprise nearly 75 percent of general fund revenue.  State revenues have begun to recover from the economic downturn, although forecasted fiscal 2012 revenue collections remain well below peak levels witnessed in fiscal 2008.

Staff Contact: Brian Sigritz

NASBO Publications

  • This report shows that state budgets are expected to continue on a path of stable, moderate growth, with 42 governors recommending spending increases for fiscal 2016. However, progress is slow, and structural issues and long-term spending pressures will require difficult budget choices for many states. States’ spending proposals continue to be cautious as they plan for limited revenue growth.
  • This report shows that state fiscal conditions are moderately improving in fiscal 2015 as the economic recovery enters its sixth year. Consistent annual growth in the economy, while not as robust as many would like, is leading most states back to budget growth. States have replenished some spending for areas cut back during the recession, such as K-12 education and higher education. In addition to bolstering state spending, economic growth has produced higher revenue collections.