Idaho, New Mexico and Wyoming Stand Out in Tax Revenue Analysis
From January 1, 2020 through March 2022, Idaho generated 16% more tax revenue than estimated what might have been collected without the pandemic. This ranked as the highest gain in the United States, according to Pew Charitable Trusts.
Idaho took advantage of the nation’s pride fastest growing population and steady job growth over the past two years. Additionally, Idaho approved several tax cuts, including $600 million income tax cut – the largest in state history – which was enacted in early February 2022.
New Mexico ranked second in tax revenue gains at 15% more than expected, led by rising energy prices. Justin Theal of Pew, co-author of the report, said the state budget relies heavily on taxes related to oil and gas drilling in the Permian Basin and has benefited from rising oil prices.
Meanwhile, other Mountain West states have yet to see their collections surpass pre-pandemic growth trends.
“States dependent on natural resources like Wyoming, and those dependent on tourism, like Nevada, have experienced some of the deepest and longest tax revenue declines during the pandemic,” Theal said.
Both states have collected about 8% less than estimates made before the pandemic.
Wyoming is one of only two states – the other being North Dakota – that the analysis found “hasn’t collected enough revenue to return to pre-pandemic levels, let alone catch up. pre-COVID growth trends”.
The rest of the region is at the positive end of the spectrum. Utah’s tax revenue gain was 7.5%, followed by Montana (6.2%), Colorado (3.6%) and Arizona (2.8%).
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Boise State Public Radio in Idaho, KUNR in Nevada, the O’Connor Center for the Rocky Mountain West in Montana, KUNC in the Colorado, KUNM in New Mexico, with support from affiliate stations throughout the region. Funding for the Mountain West News Bureau is provided in part by the public broadcasting company.
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