State Tax Update: August 2011
For the first time in 10 years, states cut taxes more than they increased them. But readers should not draw hasty conclusions about what this means for states’ fiscal health. Most states continued to face substantial budget shortfalls during their 2011 legislative sessions, even though some states saw revenue collections increase. The net state tax reduction is a result of temporary tax increases expiring in a handful of states. Removing the impact of those temporary taxes from the mix, states enacted a net tax increase of $9 billion. But again, this is misleading because large tax increases in only two states accounted for nearly all of the gains. In short, the aggregate figures are skewed by a handful of states where tax increases and tax cuts were large and extensive.
All 50 states have provided NCSL with data about tax changes made in 2011, which largely affect revenue collections in fiscal year (FY) 2012. Read NCSL's press release on the State Tax Update: August 2011.