Income Tax Revenue Up 9.7 Percent; Corporate Tax Revenue Up 9.2 Percent
Note: This is a revised release due to a calculation error that caused California's sales tax to be overstated by $6.4 billion. New Mexico replaced California as one of the four states with the largest percentage tax increase.
WASHINGTON, April 17, 2012 /PRNewswire-USNewswire/ -- Overall government tax collections for states increased $55.7 billion to $757.2 billion in fiscal year 2011, the U.S. Census Bureau reported today. Corporate net income tax revenue was at $40.2 billion, up 9.4 percent, while tax revenue on individual income was at $259.1 billion, up 9.8 percent. General sales tax revenue was at $234.5 billion, up 5.4 percent. Corporate net income tax revenue, individual income tax revenue and general sales tax revenue comprised 70.5 percent of all state government tax collections nationally.
These new statistics come from the 2011 Annual Survey of State Government Tax Collections, which contains annual statistics on the fiscal year tax collections of all 50 state governments, including receipts from licenses and compulsory fees. This survey provides an annual summary of taxes collected by states for up to 25 tax categories. Tax revenues also include related penalty and interest receipts of the governments.
"The nationwide increases in state government tax revenue are an indication of the stabilization of revenues for state governments," said Lisa Blumerman, chief of the Governments Division. "These data help us understand the condition of our state governments and their fiscal ability to continue to provide public services."
All 50 states saw an increase in total tax revenue in fiscal year 2011, led by North Dakota (44.5 percent), Alaska (22.4 percent), Illinois (15.3 percent), and New Mexico (15.1 percent).
Among some of the findings from selected tax categories:
States with the largest percent increase in revenue from individual income taxes were North Dakota (42.6 percent), Illinois (31.9 percent), Arizona (18.5 percent) and Indiana (18.5 percent).
States with the largest percent increase in motor fuels tax revenue were California (80.3 percent), Alaska (37.4 percent), North Dakota (13.1 percent) and Kentucky (10.6 percent).
Severance taxes — collected for removal or harvesting of natural resources (e.g., oil, gas, coal, timber, fish, etc.) — were up $3.5 billion, a 31.2 percent increase. This followed a 16.4 percent decrease in fiscal year 2010. The largest increases in severance tax revenue were seen in the West.
Revenue on taxes imposed distinctively on insurance companies and measured by gross or adjusted gross premiums (insurance premium sales tax) increased $593.8 million, up 3.8 percent. This followed a 5.3 percent increase in fiscal year 2010. The largest increases in insurance premium sales tax revenue were seen in the Northeast and South.
These statistics do not include employer and employee assessments for retirement and social insurance purposes. Also excluded are collections for the unemployment compensation taxes imposed by each of the state governments. These statistics include tax collections for state governments only; they do not include tax collections from local governments.
Although the data are not subject to sampling error, the statistics are subject to possible inaccuracies in classification, response and processing. Every effort is made to keep such errors to a minimum through care in examining, editing and tabulating the data.
The tax revenue data pertain to state fiscal years that ended June 30, 2011, in all but four states. Amounts shown for these four states reflect the different timing of their respective fiscal years, which were the
12-month periods ending on March 31, 2011, for New York; Aug. 31, 2011, for Texas; and Sept. 30, 2011, for Alabama and Michigan.