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State and Local Tax Policy: What are the sources of revenue for state governments?

2006_state_rev_source
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2006_state_rev_source

States collected general revenues totaling nearly $1.4 trillion in 2006. Nearly one-third 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 $420 billion in intergovernmental transfers in 2006, which accounted for 31 percent of their general revenues.
  • Sales and gross receipts taxes were the largest source of states’ own tax revenues in 2006, totaling about $333 billion or  one-fourth of general revenues.
  • Individual and corporate income taxes accounted for one-fifth of state general revenues in 2006. The individual share totaled $246 billion and the corporate share about $47 billion.
  • Other taxes, charges, fees, and miscellaneous receipts totaled $340 billion in 2006, about one-fourth of general revenues.
 
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