COVID-19 decimated state tax collections
The 10 states that saw tax collections dive the most because of the COVID-19 pandemic saw revenue fall from 5.6% to over 40% from 2019 to 2020, according to a data analysis by the Urban Institute
Why it matters: Given the shortfall, those states are the most likely to benefit from the $350 billion in state and municipal aid included in the $1.9 trillion coronavirus relief package expected to pass the House on Wednesday.
- The Senate approved it Saturday without a single Republican vote. Six of the 10 states with the largest revenue drops have two Republican senators. Montana has one senator from each party.
- The data includes income and sales tax revenues. Sales taxes were particularly impacted by pandemic-related business shutdowns and unemployment, which reduced consumer spending.