The first edition of Urban’s new State Tax and Economic Review finds total state tax revenue from all sources showed strong growth in the final quarter of 2017 and the first quarter of 2018. The largest increases were in individual income tax revenues. State government tax revenue grew mostly in response to income shifting due to the Tax Cuts and Jobs Act, and other one-time factors. In addition, a handful of states facing falling revenues at the end of fiscal year 2017, enacted significant tax changes, projected to bring in $8.8 billion additional revenue in fiscal year 2018.
This report was updated on November 5, 2018 to reflect additional information on withholding and estimated payments received from the states.