Breakdown of State Tax Revenue 2012
Taxes are the largest single source of general revenues for states. In 2011, taxes made up 45.9 percent of general state revenues totaling $757.9 billion, or $2,432 per capita. In 2012, tax revenues increased 4.8 percent over 2011 in nominal terms or 2.8 percent when adjusted for inflation. The largest component of tax revenues are sales and gross receipt taxes—47.2 percent. The next largest component of tax revenue comes from income taxes at 40.5 percent. Other significant sources of state taxes include licenses at 6.8 percent of tax revenue; severance at 1.9 percent; and property at 1.9 percent.
In nominal terms, total state tax revenues reached pre-recession levels in 2011, after seeing year-over-year losses in 2009 and 2010. However, when adjusted for inflation, total tax revenues remain below their pre-recession levels. In 2012 dollars, states hit a high of total taxes collected in 2007 at over $841 million – around 5.5 percent less than taxes collected in 2012.
The primary driver for growth in total tax revenues in 2012 was income taxes, which contributed 62.0 percent of the increase. Gains in sales tax revenue contributed another chunk to overall gains (23.1 percent) along with severance taxes (11.1 percent). A decrease in year-over-year property tax collections detracted from the total tax increase.
Most states—47—saw an increase in revenue from taxes from 2011 to 2012. The three states that saw a decrease in year-over-year tax revenue were New Hampshire (-4.9 percent), Wisconsin (-3.9 percent) and California (-3.7 percent).