State Tax Revenues Are Slowly Rebounding

State Tax Revenues Are Slowly Rebounding

A new report from the Rockefeller Institute of Government finds that tax revenues at the state level are rebounding across the country, with a second consecutive quarter of growth in the period that ended June 30. Based on preliminary data from forty-seven states, the report, State Tax Revenues Are Slowly Rebounding (7 pages, PDF), found that gains in collections were widespread during the second quarter of the year, with thirty states showing year-over-year revenue increases and only seventeen showing declines. Sales tax revenues were particularly strong, showing an average gain of 5.9 percent. Nevertheless, revenues remained significantly below pre-recession levels, with overall second-quarter collections down roughly 17 percent over the same period two years ago.