Tax revenue grows in R.I. since recession

TAX REVENUE in 29 states, including Rhode Island and most of New England, has recovered from the recession, according to The Pew Charitable Trusts. / COURTESY THE PEW CHARITABLE TRUSTS
TAX REVENUE in 29 states, including Rhode Island and most of New England, has recovered from the recession, according to The Pew Charitable Trusts. / COURTESY THE PEW CHARITABLE TRUSTS

PROVIDENCE – Tax revenue in 29 states, including Rhode Island, has recovered since the recession, according to a report from The Pew Charitable Trusts released this week.
In the Ocean State, tax revenue was 0.9 percent higher in fourth quarter 2015 than at its peak in third quarter 2006, the Fiscal 50 report showed. Figures account for inflation.
Rhode Island, along with Maine, which had a 3 percent increase, for the first time moved onto the list of states in which tax revenue has recovered, Pew said.
Massachusetts experienced the greatest increase in New England, at 9.9 percent, followed by Vermont at 9.8 percent and Connecticut at 1.3 percent. New Hampshire was the only New England state to register a decline at 0.9 percent.
According to Pew, states collectively took in 6.5 percent more tax revenue than they did in the third quarter of 2008 before receipts plunged in the recession, after adjusting for inflation and seasonal fluctuations.

But it said the national trend masks how widely recovery has varied across the states, as eight states – the most since the recession ended – posted rebounds of 15 percent or more. Conversely, collections in four of the 21 states with below-peak tax revenue fell 15 percent or more.
North Dakota led the states with tax collections 66.5 percent higher than during its highest point during the recession, while Alaska was furthest below its peak with a 93.1 percent decrease.

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