State Revenue Rises for 13th Consecutive Quarter, Report Says
U.S. states collected 8.6 percent more revenue in the first three months of 2013 than the same period last year, the 13th straight quarter of growth, according to a report by the Nelson A. Rockefeller Institute of Government.
Higher personal income tax receipts account for the revenue gain, although some taxpayers accelerated income into 2012 to avoid higher federal taxes, according to the report, released today. Individual income-tax collections were up 18.4 percent.
It is the second straight quarter since the start of the 18-month recession that ended June 30, 2009, that inflation-adjusted quarterly state tax collections for most states are higher compared with peak levels, although those periods are “artificially boosted” because of the income-tax receipts, according to the report.
“While the Great Recession ended over three years ago, the damage caused by the Great Recession on state tax revenues is significant and it will take years before the states fully recover,” Lucy Dadayan, a senior policy analyst at the Albany, New York-based institute, and Donald J. Boyd, a senior fellow at the institute, said in the report.
State revenue is set to gain in the second quarter of 2013, based on preliminary April and May collections from 47 early-reporting states.
“However, June is the most important month in the quarter and these early results may not reflect the full quarter,” according to the report.
-- Editors: Justin Blum, Laurie Asseo
To contact the editor responsible for this story: William Glasgall at firstname.lastname@example.org
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.