(The Center Square) – Colorado ranks 17th in a listing of state and local tax collections per capita compiled through the Tax Foundation.
Coloradans paid $6,418.44 per capita in fiscal 12 months 2021, the newest 12 months with state-by-state information to be had, in step with the Washington, D.C.-based suppose tank.
State and local governments had favorable tax collections all through the pandemic years regardless of top unemployment in 2020, personnel shortages in 2021 and inflation in 2022. The report discovered the surge of tax income in fiscal years 2021 and 2022 didn’t proceed in 2023, however the collections “remain robust in most states and well above the pre-pandemic levels even after accounting for inflation.”
The District of Columbia was once the perfect in per capita tax collections at $13,278, adopted through New York ($10,266), Connecticut ($9,458), California ($9,175), New Jersey ($8,303) and Massachusetts ($8,101).
Alaska had the bottom per capita tax assortment charge at $4,192, adopted through Alabama ($4,245), Tennessee ($4,272), Florida ($4,405) and Mississippi ($4,435).
“Since fiscal year 2019, the last full fiscal year before the pandemic, state and local tax collections have risen more than 27%,” the file mentioned. “Much of that gain is subsumed by inflation, but even after adjusting for inflation, state and local tax revenues are more than 7% higher than they were pre-pandemic.”
The file famous a number of states have decreased particular person and company source of revenue tax charges all through the previous couple of years, however the spike in tax income is environment a brand new baseline.
“The rate of revenue growth witnessed in fiscal year 2021 was never going to be sustainable, but most states remain substantially better off than they were pre-pandemic, even after adopting tax relief, with every expectation that the new baseline is far higher than it was before,” the file mentioned. “Revenues are high enough, in some states, that the tax-cutting trends of 2021-2023 are likely to continue into 2024.”
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