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![handle is hein.taxfoundation/srjxz0001 and id is 1 raw text is: , A 0 A 0
Survey of State Tax Rates and Collections
Rates for FY'92 Rise Sharply; Collections for FY'90 Break $300 Billion
by Gregory S. Leong
Thirty states have enacted tax increases
that will raise a total of $17 billion in new
revenue in FY1992, making FY'91 the biggest
revenue-raising year in history at the state
level. In addition to hiking tax rates, states
increased taxes indirectly by broadening tax-
able bases, extending temporary hikes, and
conforming to federal tax rates. They also
enacted a host of non-tax revenue-raising
measures, such as higher fees and accelerated
collections, that will bring in approximately
$2.4 billion more in FY'92 revenue.
Gasoline and tobacco were the most
popular targets as 23 states hiked the amounts
they collect at the pump and 14 states raised
their cigarette excises. The bulk of the new
revenue will not come from higher excise
rates, however, but rather from higher sales
taxes in six states, and higher personal income
taxes in eight states.
Individual Income Taxes
Connecticut was the only state to enact a
new broad-based income tax this year. Law-
makers there repealed taxes on capital gains,
dividends, and interest income, replacing
them with a flat 4.5 percent income tax. All
told, the state's FY'91 tax package is expected
to net $1 billion in new FY'92 revenues. With
this new tax system, Connecticut joins six
Figure 1
Percentage Distribution of State Government Tax Collections by Source
Alcohol
Death and Gift
Severance
Tobacco
Property
Public Utilities
Insurance
Other
Licenses
Motor Fuels
Corporate Income
Personal Income
General Sales
Source: Tax Foundation (see table 3).
Fiscal Year 1990
F] 1.1
V] 1.3
[1.6
1.8
1.9 Total State Tax Revenues = $300.5 Billion
S2.2
2.5
2.6
W6.3
6.5
~7.3
10 15 20 25
Percent of Total State-Level Collections
Gregory Leong is Director of Special Studies at the Tax Foundation.
Type
of Tax
32
.0
33.2
Gregory Leong is Director of Special Studies at the Tax Foundation.](ViewImageLocal?handle=hein.taxfoundation/srjxz0001&div=1&collection=&method=preview&ext=.png&size=3)