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![handle is hein.taxfoundation/srcxz0001 and id is 1 raw text is: ~pcmWReporL
Survey of State Taxes and Rates
by Paul G. Merski and Gregory S. Leong
As state tax rates continue to climb
in 1990, so do tax collections. State tax
revenues jumped nearly $20 billion in
fiscal year 1989, a 7.5 percent increase
over the previous year's take. Their
total was a record high $284 billion,
compared to fiscal year 1988's level of
$264.1 billion. Rate hikes on sales, gaso-
line, and corporate and personal in-
come have contributed to new reve-
nue highs for the last several years.
In FY'89 general sales taxes pro-
duced more revenue for the states than
any other single source (see Figure 1).
They provided 32.9 percent of total
collections, or $93.4 billion, up 7.3
percent from last year.
Collections from personal and cor-
porate income taxes gathered in the
next largest loads of revenue, totaling
$112.6 billion, nearly 40 percent of total
collections. The personal income tax
component of this haul showed a pro-
digious increase of 10.7 percent and
garnered almost as much revenue as
general sales, $88.7 billion. This 10.7
percent increase was the largest of all
state revenue sources, and it brought
in a whopping $8.6 billion more than
was collected in FY'88. Rising almost
as quickly are corporate income tax
collections. These increased 10.4 per-
Figure 1
State Tax Revenues
Percent by Type of Tax
Deat!
S
Publi
Mc
Corporat
Person
Alcohol i 1.1 FIsc
hand Gift C] 1.2
everance ILI 1.5
Tobacco I] 1.8
Property L 1.9
ic Utilities dIJ 2.2
nsurance II 2.6
Other I 2.7
Licenses 6.2
otor FuelsIII 6.3
e Income 8.4
al Income 0
General Sales
;al Year 1989
Total State Tax Revenues = $284.0 Billion
31.2
I
I Percent of Total Tax Revenues
Paul Merski is Director of Fiscal Affairs and Gregory Leong is a tax policy analyst at the Tax
Foundation.
32.9
I
Percent of Total Tax Revenues
Paul Merski is Director of Fiscal Affairs and Gregory Leong is a tax policy analyst at the Tax
Foundation.
TAX FOUNDATION
AUGUST 1990
I
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