State tax revenues grow for 5th consecutive year
According to newly released data from the U.S. Census Bureau’s 2015 Annual Survey of State Government Tax Collections, state government tax revenue increased 4.8 percent from fiscal year 2014 to fiscal year 2015 – growing from $875.0 billion to $916.5 billion. It’s the fifth consecutive year states have seen their tax revenue grow.
Over this period, tax collections grew in every state but four: Alaska, Illinois, North Dakota and Texas. By far, tax collections in Alaska saw the biggest year-over-year declines of any state, dropping almost 75 percent. The decline in Alaska came almost exclusively from a drop in severance tax collections, which fell 96 percent, equal to $2.4 billion.
On the other side, tax collections in Delaware grew the most of any state – by 10.6 percent – followed by California with a growth rate of 9.4 percent and Oregon with a rate of 9.2 percent.
For states overall, income taxes were responsible for a significant amount of the 4.8 percent growth rate, contributing $27 billion of the $41 billion year-over-year increase. Within the income tax category a majority of the growth – 92 percent – came from an increase in individual income tax receipts while 8 percent came from an increase in corporate income taxes.
An increase in sales taxes contributed an additional $16.5 billion to the overall year-over-year increase in collections, while property taxes contributed $1.3 billion. Severance taxes declined from 2014, dropping overall tax collections by $5.2 billion.