By Jim Miller
11/11/2014 2:42 PM
Despite dropping during the first three months of the year, state government tax revenue continued to surpass pre-recession levels through the end of June, according to a new study by The Pew Charitable Trusts.
California is among 21 states where tax revenue in the second quarter of 2014 surpassed (after adjusting for inflation) what it was before revenue collapsed during the recession, the Pew report found. California received $34.9 billion in tax revenue from April through June of this year, 5.5 percent higher than its pre-recession high of $31.3 billion in the third quarter of 2006. That is more than triple the U.S. average of 1.6 percent.
North Dakota topped all states, with an oil boom increasing tax revenue 119.2 percent over its pre-recession high. Next on the rebound list were Illinois (19.8 percent) and Minnesota (16.3 percent). In California and most of the other 21 states, tax increases helped produce the tax revenue recovery.
In 29 other states, tax revenue trailed pre-recession levels after adjusting for inflation. Alaska revenue is down almost 69 percent from its 2008 peak, but that was when oil prices hit record levels and a new state oil tax took effect. It also is lower in New Mexico (-27.3 percent), Wyoming (-26.5 percent) and Florida (-18.7 percent.)
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