Sales Tax Decline in Late 2008 – Was the Worst in 50 Years

Nelson A. Rockefeller Institute of Government: Sales Tax Decline in Late 2008 – Was the Worst in 50 Years – Early Data for 2009 Show Further, Sharp Drop in Tax Revenues for Most States, Donald J. Boyd and Lucy Dadayan

“The overall amount of taxes collected by the 50 states continued to fall during the fourth quarter of 2008, with state and local sales taxes one of the largest components of state and local budgets suffering the worst decline in half a century, according to a new Rockefeller Institute of Government report issued today. In the face of a weakening economy, the Institutes regular quarterly report on tax revenues generated by the states shows an overall decline of 4 percent during the fourth quarter of 2008, compared with the same period a year earlier. Forty-one of the 50 states experienced declining revenues, with the Far West region suffering the most. Sales taxes, which are usually the largest or second-largest source of state tax revenue, suffered a 6.1 percent decline. Including those collected by local governments, the sales tax showed its weakest performance in 50 years.”

Sales Tax Decline in Late 2008 – Was the Worst in 50 Years

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