State and Local Tax Policy: What are the sources of revenue for state governments?
States collected general revenues totaling nearly $1.5 trillion in 2008. 28% of that revenue came as transfers from the federal government and, to a much smaller degree, from local governments. The remainder came from state taxes, fees, and miscellaneous receipts.
- States received about $446 billion in intergovernmental transfers in 2008, which accounted for nearly 29 percent of their general revenues.
- Sales and gross receipts taxes were the largest source of states’ own tax revenues in 2008, totaling about $360 billion or one-fourth of general revenues.
- Individual and corporate income taxes accounted for about one-fifth of state general revenues in 2008. The individual share totaled a little under $280 billion and the corporate share a little over $50 billion.
- Other taxes, charges, fees, and miscellaneous receipts totaled just over $380 billion in 2008, about one-fourth of general revenues.
