The worst of the budget crunch that afflicted US state governments after the 2008 financial crisis appears over, data from the US Census showed on Thursday. The Census reported that state tax collections last year surpassed their previous peak, and all but three states registered a surge in receipts.
States collected a record $794.6 billion in fiscal 2012, which for most ended last June 30. That was $34.3 billion more than the prior year and $14.9 billion more than the previous record $770.7 billion brought in during fiscal 2008. California's tax collections topped those of all other states, bringing in $112.37 billion, or 14 percent of the total in the country. Nonetheless, alongside Wisconsin and New Hampshire, it registered a decrease from the year before.
"The explanation for each state's year-to-year changes vary," said the Census in the report. "California's tax revenue decline was due to expiration of the temporary rate increase for the general sales and gross receipts tax." New York collected the second most taxes, $71.55 billion, followed by other states with large populations: Texas at $48.6 billion, Illinois at $36.44 billion, Florida at $33 billion and Pennsylvania at $32.95 billion. South Dakota collected the least taxes, $1.52 billion, followed by New Hampshire at $2.21 billion and Montana at $2.46 billion.
The 2007-09 recession, financial crisis and housing market downturn conspired to push almost all states' revenues down to lows not seen for decades. In fiscal 2012 states' sales tax receipts increased 2.9 percent to $242.7 billion, compared to the 5.8 percent rise the year before. Individual income taxes, which provide the most revenues, increased 8.1 percent to $280.4 billion after rising 9.8 percent the previous year. Not all states charge income or sales taxes.