Notes The rankings in this publication are for state taxes only. Previously, the MTA has published state and local taxes and expenditures in our annual "How Does Minnesota Compare?". Unfortunately, due to federal budget cutbacks, the local data are not available from the Census Bureau. It is uncertain when they will again be available. Only those state taxes which MTA has previously published are included in this brochure. Other state tax and spending data are available, but because states differ so widely as to which level of government is responsible for various tax and spending programs, rankings for just the state portion are of limited value. Sources All tax data for this publication are taken from the Census Bureau's "Government Finances 1992-93". The data are not yet published, but are available on the Internet. The address for detailed data is http://www.census.gov/pub/govs/state/dvbsdata.wk1 (Lotus format, also available in other formats). For summary data the address is http://www.census.gov/ftp/pub/govs/www/state/state1.html. The population and personal income numbers presented separately are taken from the Aug. 1994 edition of the "Survey of Current Business published by the Bureau of Economic Analysis (in the U.S. Dept. of Commerce, home of the Census Bureau as well). The income used in the rankings per $1,000 of income are from the Sept. 1993 "Survey". All rankings are based on MTA calculations. Caveats It should be noted that Alaska's consistently high rankings are due primarily to large severance taxes levied on their exporting of oil. The resulting high tax level is "exported" to consumers outside Alaska. In fact, for many years, Alaska residents have received significant annual refunds from the state of several hundred dollars per person. Similarly, but to a lesser extent, Wyoming and Montana are also subsidized by severance taxes on coal. Regarding Minnesota, the history of our individual income tax ranking can be misleading. The per $1,000 of income rank went from second in 1988, to sixth in 1989, to fourth in 1990, to fifth in 1991 and 1992. The only significant change in the tax occurred in tax year 1988 when Minnesota fully conformed to the 1986 federal tax changes. The rank of second in 1988 was due primarily to a delay in adjusting the tax year 1988 withholding tables to reflect that year's tax cut on wage and salary income. The withholding tables were not adjusted downward until July of 1988, halfway through the tax year. This had the result of shifting reported tax revenues from FY1989 back to FY1988, artificially increasing the FY1988 ranking to second. Once those tables were adjusted, the FY1989 ranking of sixth was artificially lowered because of larger than normal refunds from the elevated withholding the previous year. The rankings of fourth for FY1990 and fifth for FY1991 and FY1992 are more accurate reflections of Minnesota's income tax rank per $1,000 of income. FY1993's rank of 4th is a real increase due to a decline in New York relative to Minnesota. 1993 1993 1993 Per Capita 1993 Per Capita Population Population Personal Income Personal Income State Thousands Rank Amount Rank ============================================================================== Alabama 4,187 22 $17,105 41 Alaska 599 48 $23,013 7 Arizona 3,936 23 $18,119 36 Arkansas 2,424 33 $15,997 49 California 31,211 1 $21,883 11 Colorado 3,566 26 $21,475 15 Connecticut 3,277 27 $27,960 1 Delaware 700 46 $21,743 13 Florida 13,679 4 $20,710 19 Georgia 6,917 11 $19,204 29 Hawaii 1,172 40 $23,369 6 Idaho 1,099 42 $17,542 38 Illinois 11,697 6 $22,535 9 Indiana 5,713 14 $19,161 30 Iowa 2,814 30 $18,324 35 Kansas 2,531 32 $19,872 21 Kentucky 3,789 24 $16,954 43 Louisiana 4,295 21 $16,590 45 Maine 1,239 39 $18,782 32 Maryland 4,965 19 $23,919 5 Massachusetts 6,012 13 $24,476 4 Michigan 9,478 8 $20,541 20 MINNESOTA 4,517 20 $21,019 18 Mississippi 2,643 31 $14,706 50 Missouri 5,234 16 $19,558 26 Montana 839 44 $17,422 39 Nebraska 1,607 37 $19,760 23 Nevada 1,389 38 $22,745 8 New Hampshire 1,125 41 $22,175 10 New Jersey 7,879 9 $26,732 2 New Mexico 1,616 36 $16,338 46 New York 18,197 2 $24,771 3 North Carolina 6,945 10 $18,688 33 North Dakota 635 47 $17,121 40 Ohio 11,091 7 $19,628 25 Oklahoma 3,231 28 $17,037 42 Oregon 3,032 29 $19,447 27 Pennsylvania 12,048 5 $21,242 16 Rhode Island 1,000 43 $21,204 17 South Carolina 3,643 25 $16,809 44 South Dakota 715 45 $17,986 37 Tennessee 5,099 17 $18,414 34 Texas 18,031 3 $19,134 31 Utah 1,860 34 $16,134 48 Vermont 576 49 $19,432 28 Virgina 6,491 12 $21,542 14 Washington 5,255 15 $21,774 12 West Virginia 1,820 35 $16,149 47 Wisconsin 5,038 18 $19,821 22 Wyoming 470 50 $19,734 24 U.S. 257,326 $20,761 Minnesota History --------------------------------------------------------------------------- 1988 4,307 NA 15 1989 4,353 21 15 1990 4,390 20 17 1991 4,432 20 18 1992 4,480 20 16 Source: Bureau of the Census, State Government Finances, 1993. Calculations by the Minnesota Taxpayers Association, 1/96. Individual Income Tax Collections -- State Per $1,000 Per $1,000 Per Capita Per Capita of Income of Income State Amount Rank Amount Rank ==================================================================== Alabama $318.34 38 $19.75 36 Alaska - - - 44 Arizona $350.78 35 $20.88 34 Arkansas $373.41 34 $24.21 26 California $551.09 14 $26.09 21 Colorado $494.88 20 $25.11 24 Connecticut $687.81 7 $25.23 23 Delaware $733.05 6 $34.67 8 Florida - - - 45 Georgia $490.09 22 $27.50 14 Hawaii $787.47 3 $37.28 2 Idaho $554.38 11 $35.35 7 Illinois $411.60 28 $19.04 37 Indiana $491.30 21 $27.29 15 Iowa $521.33 16 $28.32 11 Kansas $411.06 29 $21.14 32 Kentucky $457.49 23 $27.75 13 Louisiana $216.46 40 $13.74 40 Maine $496.32 18 $27.14 16 Maryland $620.27 9 $27.14 17 Massachusetts $894.03 1 $36.92 3 Michigan $549.02 15 $28.06 12 MINNESOTA $735.43 5 $36.68 4 Mississippi $222.32 39 $15.89 39 Missouri $383.32 33 $20.38 35 Montana $425.49 27 $26.95 19 Nebraska $426.30 25 $22.21 30 Nevada - - - 46 New Hampshire $31.81 42 $1.39 42 New Jersey $552.16 13 $20.89 33 New Mexico $326.07 37 $21.61 31 New York $840.80 2 $35.54 6 North Carolina $574.80 10 $32.79 9 North Dakota $197.93 41 $11.67 41 Ohio $425.74 26 $22.95 28 Oklahoma $402.22 31 $24.82 25 Oregon $786.02 4 $43.78 1 Pennsylvania $386.61 32 $19.01 38 Rhode Island $497.24 17 $24.20 27 South Carolina $410.32 30 $25.82 22 South Dakota - - - 47 Tennessee $18.61 43 $1.08 43 Texas - - - 48 Utah $452.74 24 $30.09 10 Vermont $496.22 19 $26.44 20 Virgina $552.27 12 $27.07 18 Washington - - - 49 West Virginia $341.30 36 $22.63 29 Wisconsin $683.97 8 $36.44 5 Wyoming - - - 50 U.S. Average $437.40 $22.15 43 State Avg. $518.24 $25.98 Minnesota History ------------------------------------------------------------------ 1988 $609.57 3 $38.82 2 1989 $573.58 6 $34.77 6 1990 $655.27 4 $37.43 4 1991 $671.15 6 $36.18 5 1992 $669.44 6 $35.38 5 Source: Bureau of the Census, State Government Finances, 1993. Calculations by the Minnesota Taxpayers Association, 1/96. Corporate Income Tax Collections -- State Per $1,000 Per $1,000 Per Capita Per Capita of Income of Income State Amount Rank Amount Rank ==================================================================== Alabama $45.26 41 $2.81 39 Alaska $1,456.19 1 $68.51 1 Arizona $62.21 29 $3.70 28 Arkansas $63.50 28 $4.12 23 California $151.48 6 $7.17 5 Colorado $38.63 45 $1.96 45 Connecticut $217.69 2 $7.98 3 Delaware $162.50 4 $7.69 4 Florida $55.26 37 $2.87 38 Georgia $68.05 23 $3.82 25 Hawaii $45.33 40 $2.15 44 Idaho $76.02 20 $4.85 17 Illinois $93.81 17 $4.34 21 Indiana $114.87 10 $6.38 9 Iowa $59.36 32 $3.22 34 Kansas $86.58 18 $4.45 20 Kentucky $67.24 25 $4.08 24 Louisiana $57.11 33 $3.62 29 Maine $60.48 31 $3.31 32 Maryland $52.45 38 $2.29 43 Massachusetts $159.57 5 $6.59 6 Michigan $194.49 3 $9.94 2 MINNESOTA $112.80 11 $5.63 13 Mississippi $64.72 26 $4.63 18 Missouri $36.82 46 $1.96 46 Montana $101.38 14 $6.42 8 Nebraska $63.94 27 $3.33 31 Nevada - - - 47 New Hampshire $112.15 12 $4.91 16 New Jersey $120.15 9 $4.55 19 New Mexico $55.96 36 $3.71 27 New York $144.94 7 $6.13 10 North Carolina $102.33 13 $5.84 12 North Dakota $85.31 19 $5.03 15 Ohio $61.06 30 $3.29 33 Oklahoma $43.96 43 $2.71 41 Oregon $67.62 24 $3.77 26 Pennsylvania $122.01 8 $6.00 11 Rhode Island $69.85 22 $3.40 30 South Carolina $48.40 39 $3.05 35 South Dakota $39.36 44 $2.38 42 Tennessee $71.65 21 $4.15 22 Texas - - - 48 Utah $45.13 42 $3.00 37 Vermont $56.55 34 $3.01 36 Virgina $56.28 35 $2.76 40 Washington - - - 49 West Virginia $98.36 15 $6.52 7 Wisconsin $97.66 16 $5.20 14 Wyoming - - - 50 U.S. Average $94.07 $4.76 46 State Average $104.26 $5.24 Minnesota History ---------------------------------------------------------------------- 1988 $95.65 11 $6.09 13 1989 $112.06 10 $6.79 11 1990 $109.76 10 $6.27 10 1991 $103.40 11 $5.57 9 1992 $94.38 11 $4.99 11 Source: Bureau of the Census, State Government Finances, 1993. Calculations by the Minnesota Taxpayers Association, 1/96. General Sales Tax Collections -- State Per $1,000 Per $1,000 Per Capita Per Capita of Income of Income State Amount Rank Amount Rank ================================================================== Alabama $284.26 42 $17.64 37 Alaska - - - 46 Arizona $573.11 7 $34.12 7 Arkansas $461.54 17 $29.93 10 California $534.16 10 $25.29 19 Colorado $279.87 44 $14.20 44 Connecticut $627.47 6 $23.01 26 Delaware - - - 47 Florida $679.53 5 $35.23 6 Georgia $430.79 23 $24.17 20 Hawaii $1,111.71 1 $52.63 2 Idaho $442.36 21 $28.21 13 Illinois $373.64 33 $17.28 39 Indiana $402.63 28 $22.36 28 Iowa $444.88 20 $24.17 21 Kansas $463.06 16 $23.81 24 Kentucky $386.81 31 $23.46 25 Louisiana $310.23 41 $19.69 32 Maine $517.82 12 $28.32 12 Maryland $346.05 37 $15.14 40 Massachusetts $353.32 36 $14.59 43 Michigan $365.83 34 $18.70 36 MINNESOTA $525.61 11 $26.22 16 Mississippi $535.13 9 $38.25 4 Missouri $385.34 32 $20.49 29 Montana - - - 48 Nebraska $432.41 22 $22.53 27 Nevada $744.39 4 $38.02 5 New Hampshire - - - 49 New Jersey $463.40 15 $17.53 38 New Mexico $816.27 3 $54.10 1 New York $345.33 38 $14.60 42 North Carolina $338.91 39 $19.33 34 North Dakota $454.74 18 $26.81 15 Ohio $358.01 35 $19.30 35 Oklahoma $313.70 40 $19.35 33 Oregon - - - 50 Pennsylvania $400.80 29 $19.71 31 Rhode Island $413.00 27 $20.10 30 South Carolina $427.31 25 $26.89 14 South Dakota $428.33 24 $25.87 18 Tennessee $559.53 8 $32.43 8 Texas $507.03 13 $28.68 11 Utah $480.71 14 $31.95 9 Vermont $280.05 43 $14.92 41 Virgina $256.64 45 $12.58 45 Washington $1,009.42 2 $50.34 3 West Virginia $392.51 30 $26.02 17 Wisconsin $448.70 19 $23.90 23 Wyoming $414.59 26 $23.94 22 U.S. Average $446.55 $22.62 45 State Average $457.75 $23.17 Minnesota History ---------------------------------------------------------------- 1988 $389.28 13 $24.79 22 1989 $408.01 13 $24.73 21 1990 $425.86 13 $24.32 21 1991 $443.01 15 $23.88 20 1992 $488.99 11 $25.84 18 Source: Bureau of the Census, State Government Finances, 1993. Calculations by the Minnesota Taxpayers Association, 1/96. Excise Tax Collections -- State Per $1,000 Per $1,000 Per Capita Per Capita of Income of Income State Amount Rank Amount Rank ====================================================================== Alabama $316.36 10 $19.63 5 Alaska $165.67 41 $7.80 45 Arizona $187.02 38 $11.13 36 Arkansas $218.75 27 $14.18 15 California $157.09 44 $7.44 47 Colorado $163.88 42 $8.32 42 Connecticut $317.56 8 $11.65 33 Delaware $283.03 12 $13.39 18 Florida $250.39 19 $12.98 21 Georgia $126.59 49 $7.10 49 Hawaii $325.30 7 $15.40 9 Idaho $197.53 34 $12.60 24 Illinois $252.66 18 $11.68 31 Indiana $148.43 46 $8.24 43 Iowa $197.10 35 $10.71 37 Kansas $185.29 39 $9.53 40 Kentucky $231.36 23 $14.03 16 Louisiana $207.15 33 $13.15 20 Maine $217.82 28 $11.91 28 Maryland $269.16 14 $11.78 30 Massachusetts $195.14 37 $8.06 44 Michigan $144.58 47 $7.39 48 MINNESOTA $264.79 16 $13.21 19 Mississippi $209.08 31 $14.94 13 Missouri $143.29 48 $7.62 46 Montana $238.55 21 $15.11 11 Nebraska $215.42 29 $11.22 34 Nevada $559.74 2 $28.59 1 New Hampshire $598.54 1 $26.20 2 New Jersey $396.88 3 $15.02 12 New Mexico $214.27 30 $14.20 14 New York $276.20 13 $11.68 32 North Carolina $267.52 15 $15.26 10 North Dakota $317.48 9 $18.72 6 Ohio $219.36 26 $11.82 29 Oklahoma $196.07 36 $12.10 26 Oregon $157.65 43 $8.78 41 Pennsylvania $245.81 20 $12.09 27 Rhode Island $349.93 5 $17.03 7 South Carolina $176.98 40 $11.14 35 South Dakota $229.79 24 $13.88 17 Tennessee $223.19 25 $12.94 22 Texas $297.34 11 $16.82 8 Utah $152.90 45 $10.16 39 Vermont $370.13 4 $19.72 4 Virgina $207.54 32 $10.17 38 Washington $253.79 17 $12.66 23 West Virginia $341.26 6 $22.62 3 Wisconsin $233.36 22 $12.43 25 Wyoming $120.12 50 $6.94 50 U.S. Average $230.48 $11.67 Minnesota History --------------------------------------------------------------------- 1988 1989 Minnesota history not available for these years 1990 $249.71 6 $14.26 15 1991 $242.33 11 $13.06 18 1992 $260.75 13 $13.78 20 Source: Bureau of the Census, State Government Finances, 1993. Calculations by the Minnesota Taxpayers Association, 1/96.