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

  • State fiscal conditions are continuing to improve into fiscal 2013, although many state budgets are not fully back to prerecession levels. This report finds that governors’ recommended budgets show an overall increase in both general fund expenditures and revenues in fiscal 2013. Fiscal trends indicate that while
  • The rise of internet sales and electronic commerce over the past fifteen years has prompted states and Congress to reconsider the issue of remote sales tax collection. After years of inaction on the issue, Congress now has three similar, though importantly distinct legislative proposals under consideration in both the House and Senate that would require out-of-state retailers to collect and remit sales taxes.
  • This report finds that the recent improvement in the national economy has not translated to strong growth in total state spending. This is largely due to the fact that state revenues have not increased as fast as Recovery Act funds have declined, leading to a unique situation in which total state expenditure growth has slowed during the same time that the national economy has been improving.

Recently Released Reports