Tax collections in US states increased nearly 20% from fiscal 2020 to fiscal 2021, Census
Total amount collected by states in fiscal 2021 was $1.27 trillion
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State tax collections across the U.S increased 20% from fiscal 2020 to fiscal 2021 and amid the pandemic, to $1.27 trillion, according to a recent Census report.
The report released Friday shows the 19.23% increase – from $1.07 trillion in fiscal 2020 – was driven in part by a 6.74% increase in sales and gross receipt taxes, a 10.57% hike in amusement sales taxes and a 30.48% increase in individual income taxes.
Tax experts say the percentage increases could be misleading because states delayed their tax filing deadline by several months when the pandemic began.
For most states, the move pushed their 2020 income tax revenue into the next fiscal year, which also artificially deflated the 2020’s numbers, according to Forbes.com.
Another factor is the massive, pandemic-related boost in unemployment insurance for about 15 months – which is taxable in most states.