July 28, 2009
A new study from the Rockefeller Institute of Government in Albany, New York reports that total state tax collections for the first quarter of 2009 declined by 11.8% from the same quarter last year.
This is the largest decline since 1963 and can be attributed in large part to the impact of the current recession. There were sharp reductions in collections for all three of the major state revenue sources:
- Sales Taxes declined by 8.3%;
- Personal Income Taxes declined by 17.6%; and
- Corporate Income Taxes declined by 19.9%.
In Illinois during this time period, total tax collections declined by 10.8%., sales tax collections dropped by 9.4%, personal income tax collections by 12.7% and corporate income tax collections fell by 18.7%. The Illinois rates of decline were better than the national figures in all categories except sales taxes.
Rockefeller Institute researchers report that preliminary data for the April to June 2nd quarter of 2009 indicate a worsening situation, with still further declines in state tax collections.