Personal income tax revenues were down 14 percent in the January through April period, with April collections alone down 21.4 percent, in the forty-one states with broad-based income taxes.
“The first four months are a bell-weather for year-long personalincome tax revenues, and right now it’s looking rather ominous,” said Nicholas Jenny, fiscal analyst at the Rockefeller Institute of Government in Albany, NY.
“Our survey shows that personal income tax collections have come in below the projections of almost every state with at least a dozen off by ten percent or more,” he said.
Analysts say a major cause of the drop was a significant reduction in stock market related income, including capital gains, dividends and stock options, over the course of 2001.
California, Connecticut, Idaho, Massachusetts and New York were particularly hard hit, registering declines from 19.1 to 28.9 percent.
The survey conducted by the Rockefeller Institute of Government, the National Governors Association, the National Conference of State Legislatures, the Federation of Tax Administrators and the National Association of State Budget Officers is available online at the following Web sites:
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