PROVIDENCE – Although the Ocean State maintained its status as a high tax-burden state, its rank in a number of measures fell when compared with previous years, according to the annual state-by-state comparison study released this morning by the Rhode Island Public Expenditure Council.
Using U.S. Census Bureau data for the most recent fiscal year available (FY 2005), RIPEC calculated that the state’s total per capita tax collections were $4,191, putting it ninth among the 50 states, compared with its ranking of seventh a year earlier and 12th in FY 1995. Those ratings compare with Connecticut’s second-place ranking in per capita tax collections in FY 2005, and the fifth place awarded to Massachusetts.
Alternately, when ranked by how much the state collected per $1,000 of personal income, Rhode Island ranked seventh in FY 2005, the same as in FY 2004 and above the state’s 14th-place ranking in FY 1995. Meanwhile, Connecticut ranked 11th in FY 2005 and Massachusetts ranked 34th.
Although Rhode Island continues to have a high-ranking property tax burden, the study found a slight decrease compared with that nationwide. The state fell from fifth in per capita state and local property tax collections in FY 2004 (and in FY 1995) to seventh in FY 2005. Connecticut remained the state with the second-highest property tax collections per capita, the same ranking as in FY 2004, while Massachusetts fell from seventh place to ninth.
In terms of property tax collected per $1,000 of personal income, Rhode Island fell one point to sixth in FY 2005, compared with fifth the year before and fifth a decade before. Connecticut stood at eighth, while Massachusetts ranked 16th.
Rhode Island’s state and local income tax collections, on a per capita basis, showed a slight uptick, to 16th in FY 2005 from 17th in FY 2004 (and 21st in FY 1995). In collections per $1,000 of personal income, the state’s ranking was 21, four places lower than its FY 2004 rank but seven places higher than in FY 1995. By comparison, Massachusetts income tax collections ranked third per capita and fifth on a per $1,000 of personal income basis in FY 2005, while Connecticut ranked fourth per capita and 13th per $1,000 of personal income.
The Rhode Island Public Expenditure Council is an independent, nonprofit and nonpartisan public policy research and education organization dedicated to the advancement of effective, efficient and equitable government in Rhode Island. To learn more, or view the full report, How Rhode Island Compares, visit www.ripec.com.
