State tax revenue rise slowest since mid-2010

Posted 3/19/12

ALBANY – U.S. state tax collections rose during the last three months of 2011 at the slowest pace in a year and a half, according to an analysis.

The Nelson A. Rockefeller Institute of Government said today that revenue rose 2.7 percent during the fourth quarter from a year earlier, the smallest increase since the three months ended June 2010. The figures compare with growth of 6.1 percent in the third quarter and 11 percent in the three-month period ended June 30.

State tax collections have risen for the past two years, easing pressure on governments struggling to erase budget deficits left in the wake of the 18-month recession. The last quarter’s tax data marks a retreat from a pace that couldn’t be sustained, said Robert Ward, who follows states for the Rockefeller Institute in Albany, N.Y.

“The recent softening is probably more in line with what we would expect given the state of the economy,” he said in a telephone interview. “The economy is recovering, and so are tax revenues, but there’s still a lot of weakness out there. It’s very much a mixed picture.”

The fourth-quarter growth was restrained by California, where collections slipped 8.9 percent from a year before, while Illinois’s revenue jumped 24 percent. Both were the result of tax-law changes, the institute said. Without those two states, taxes would have grown 4.4 percent.

Among the biggest gainers were Connecticut, North Dakota and Arizona. States with declines included Massachusetts, New Hampshire, Louisiana and Utah.

Rhode Island recorded a 4.8 percent total gain during the fourth quarter of 2011. Private income tax and sales tax in the Ocean State were up 2.2 percent and 7.8 percent, respectively, from the three months ended Sept. 30, while corporate income tax revenue dropped 6.2 percent.

“If the consensus forecast for the economy is correct, states should probably not expect dramatic growth in revenues over the next year or two,” Ward said. “We know a lot has been done to bring budgets back into balance. Clearly there’s more in that area to be done.”

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News