State tax revenues nationwide continue to decline in the fourth quarter of 2009 according to a report issued today by the Rockefeller Institute of Government.
Tax revenues declined for the fourth consecutive quarter and are likely to remain below pre-recession levels for some time state the report’s authors.
A key conclusion is that “State tax revenue will continue to be insufficient to support current spending commitments, and more spending cuts and tax increases are most likely on the way for many states.”
New York’s 4th quarter 2009 revenues fell 1.6% below 2008 despite a 2.8 percent gain in revenues from personal income taxes — a result of the addition of higher rate tax categories for incomes over $200,000 and over $500,000.
However, New York sales tax revenue fell slightly and corporate income taxes fell a huge 40.4% dragging down total tax revenue.