News Release - State Tax Revenue Slowly Starting to Rebound, Rockefeller Institute Study Finds


For Immediate Release –

August 30, 2010

Media contact: Heather Trela – (518) 443-5831 /

State Tax Revenue Slowly Starting to Rebound, Rockefeller Institute Study Finds

Most states now report collections are rising, but plenty of losses still to be recovered

Albany, N.Y. — State tax revenues across the country are starting to rebound, with April-June of this year bringing a second consecutive quarter of growth, according to a new report from the Rockefeller Institute of Government.

Gains in collections were widespread during the second quarter, with 30 states showing increases in revenues compared to a year earlier, based on preliminary data the Rockefeller Institute obtained from state officials. Figures from 47 early-reporting states show collections from major tax sources rose by 2.2 percent from the second quarter of 2009.

Despite the year-over-year gains, revenues were still significantly below pre-recession levels. Preliminary figures show overall collections for the second quarter roughly 17 percent below the same period two years ago.

“With question marks surrounding the economy, states face lingering revenue uncertainty. The only sure bet is continuing budgetary challenges,” said Rockefeller Institute Senior Policy Analyst Lucy Dadayan, co-author of the report with Senior Fellow Donald J. Boyd.

Sales tax revenues were particularly strong during the second quarter, showing an average gain of 5.9 percent in the preliminary data. Collections from the other major state revenue source, personal income taxes, were up by 1.6 percent. Revenues in both categories were strengthened in part by legislated tax increases.

Gains in the April-June period followed an average 2.5 percent increase in state tax collections during the first quarter of 2010. Each of the five preceding quarters, October-December 2008 through all of 2009, saw significant declines in revenues.

The Institute’s new report is available at


About the Rockefeller Institute of Government

The Nelson A. Rockefeller Institute of Government, at the University at Albany, is the public policy research arm of the State University of New York. The Institute conducts fiscal and programmatic research on American state and local governments. Journalists can find useful information on the Newsroom page of the Web site,

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