Rockefeller Institute reports state collections recover nationally, not yet here

By: Richard S. Davis
12:00 am
April 23, 2012

The Nelson A. Rockefeller Institute of Government reports that two successive years of growth have pushed states’ revenues abover the pre-recession peak. The full study is available here.

States’ tax collections grew for the eighth straight quarter at the end of 2011, for the first time topping peak revenue levels seen at the beginning of the Great Recession, according to Rockefeller Institute research and Census Bureau data.

So far, Washington has yet to cross the line.

In Washington, tax collections from October through December were about 7 percent less than in the fourth quarter of 2007, according to state officials.

“We’re nowhere near the peak,” said Mike Gowrylow, spokesman for the state Department of Revenue.

Washington relies heavily on sales-tax collections, which haven’t returned to their peak. While consumer spending largely has returned, construction remains in the dumps. And construction historically has been a big generator of sales taxes.

Of course, the peak was exaggerated by the housing bubble and the spike in construction. It may not be the right benchmark.

Categories: Budget , Categories , Tax Policy.