An Information Report 

Measuring State 

Fiscal Capacity, 

1987 Edition 
Current Members of the 

Advisory Commission on Intergovernmental Relations 

(December 198'7) 

Private Citizens 

James S. Dwight, Jr., Arlington, Virginia 

Daniel J. Elazar, Philadelphia, Pennsylvania 

Robert B. Hawkins, Jr., Chairman, Sacramento, California 

Members of the U.S. Senate 

David Durenberger, Minnesota 

William V. Roth, Jr., Delaware 

James R. Sasser, Tennessee 

Members of the U.S. House of Representatives 

Sander Levin, Michigan 

Jim Ross Lightfoot, Iowa 

Ted Weiss, New York 

Officers of the Executive Branch, 

U.S. Government 

Gwendolyn S. King, Deputy Assistant to the President, 

Director of Intergovernmental Affairs 

Edwin Meese, 111, Attorney General 

Vacancy 

Governors 

John Ashcroft, Missouri 

Ted Schwinden, Montana 

John H. Sununu, Vice Chairman, New Hampshire 

Vacancy 

Mayors 

Donald M. Fraser, Minneapolis, Minnesota 

William H. Hudnut, 111, Indianapolis, Indiana 

Robert M. Isaac, Colorado Springs, Colorado 

Henry W. Maier, Milwaukee, Wisconsin 

Members of State Legislatures 

John T. Bragg, Deputy Speaker, Tennessee House of Representatives 

Ross 0. Doyen, Kansas Senate 

David E. Nething, Majority Leader, North Dakota Senate 

Elected County Officials 

Gilbert Barrett, Dougherty County, Georgia, County Commission 

Philip B. Elfstrom, Kane County, Illinois, County Commission 

Sandra Smoley, Sacramento County, California, Board of Supervisors 
An Information Re~ofl 

Measuring State 

Fiscal Capacity, 

1987 Edition 

ADVISORY 

COMMiSSION ON 

INTERGOVERNMENTAL 

RELATIONS 

Washington, DC 20676 

December 1987 M- 166 

Preface 

Over the years, the Advisory Commission on Intergovernmental Relations (ACIR) has been concerned 

with improving methods of measuring the capacity of 

individual states to raise revenues. In March 1982, 

ACIR adopted the following resolution: 

The Commission finds that the 

use of a single index, resident per capita income, to measure fiscal capacity, 

seriously misrepresents the actual 

ability of many governments to raise 

revenue. Because states tax a wide 

range of economic activities other 

than the income of their residents, the 

per capita income measure fails to account for sources of revenue to which 

income is only related in part. This 

misrepresentation results in the systematic over and under-statement of 

the ability of many states to raise revenue. In addition, the recent evidence 

suggests that per capita income has deteriorated as a measure of capacity. 

Therefore, 

The Commission recommends that the federal government utilize a fiscal capacity index, such as the Representative 

Tax System measure, which more 

fully reflects the wide diversity of 

revenue sources which states 

currently use. The Commission 

also recommends that the system 

be further developed so as to improve the accuracy of the underlying data and the consistency of 

the methodology, and that Congress authorize sufficient funds 

and designate an appropriate 

agency to periodically prepare 

the tax capacity estimates. 

In keeping with past efforts, the current report has 

a two-fold purpose. First, it presents new ACIR estimates of tax capacity for 1985, calculated using the 

Representative Tax and Representative Revenue Systems (RTS and RRS). Second, it compares these figures 

to those obtained using other definitions of tax capacity, setting forth the strengths and weaknesses of each 

method. The report is an attempt to provide elected officials, analysts, and citizens with factual and comparative data on the relative economic well-being and fiscal 

performance of the individual states. We hope the following information will meet this objective. 

Robert B. Hawkins, Jr. 

Chairman 

Acknowledgments and 

Related Reports 

This report presents the work of many persons. 

Mark David Menchik directed the compilation of the 

report, wrote a portion of Section 1, and with Max B. 

Sawicky, prepared the fiscal capacity estimates. Mr. 

Sawicky wroteAppendixA Most of Section 1, including 

many of the text tables, was prepared by J. Fred Giertz 

and David L. Chicoine, both of the University of Illinois. MacArthur C. Jones assisted in chart design and 

Lori OIBier typed the text. 

We would like to thank Carol E. Cohen and Robert 

Lucke-the authors of several past reports in this series-who generously provided technical and conceptual assistance in producing the RTS and RRS estimates. 

The research was conducted under the general supervision of John Kincaid, Director of Research. Full 

responsibility for the content and accuracy rests, of 

course, with the Commission and its staff. 

The RTS has a long history. In 1962 the Commission published its first estimates in an information report, followed by a 1972 report extending the measure 

to include certain classes of local government. The 

third Commission report on the subject, Tax Capacity 

of the Fifty States: Methodology and Estimates (M-134) 

was issued in March 1982; it contained estimates for 

1979. The 1982 report analyzed the difference between 

the personal income measure, the Representative Tax 

System method, and other methods of measuring fiscal 

capacity. It remains the basic document explaining the 

RTS method and its value. 

In June 1982, 1980 estimates were released in 

mimeographed form. In September 1983, ACIR published 1981 Tax Capacity of the Fifty States (A-93), containing the 1981 estimates and the Commission recommendation about measuring fiscal capacity. The report 

1982 Tax Capacity of the Fifty States (M-142) lists the 

1982 figures and also includes experimental alternatives to the standard RTS (particularly the RRS) which 

are further implemented in later volumes. The next report, issued in April 1986, was entitled 1983 Tax Capacity of the States (M-148). The most recent prior report, 

Measuring State Fiscal Capacity: Alternative Methods 

and Their Uses (M-150), presents estimates for 1984; it 

was published in September 1986. 

John Shannon 

Executive Director 

John Kincaid 

Director of Research 

Contents 

Section 1 Introduction and Overview ..................................... 1 

Table 1 State Scores on the Five Fiscal Capacity Indices. by Region. 1981-85 2 

OutlineofthisReport .................................................. 4 

The Representative Tax System and the Representative Revenue System: 

Preliminaries ...................................................... 4 

Taxcapacity ........................................................ 4 

TaxEffort .......................................................... 4 

Table 2 Information Used to Compute the Representative Tax and 

Revenue Rates of State and Local Governments. 1985 ............ 5 

The Case for the RTS and RRS .......................................... 6 

Analysis of the 1985 Estimates .......................................... 6 

Table 3 Comparison of 1985 RTS and Per Capita Income Indices for 

Five Major. Mineral-Exporting States ........................ 6 

Regional Patterns of Fiscal Capacity ...................................... 6 

Table 4 Regional Variation in Fiscal Capacity for 1985 ................. 7 

Map 1 1985 RTS Fiscal Capacity Scores ............................ 8 

Map 2 Changes in the RTS Fiscal Capacity Scores from 1984 to 1985 ..... 9 

Fiscal Capacity Changes and Fiscal Effort .................................. 10 

Table 5 1981-85 Changes in Fiscal Capacity: Tax Effort ................. 11 

Variation Among Alternative Capacity Measures ............................ 11 

Table 6 Coefficients of Correlation Between Alternative Capacity Measures . 12 

Table 7 Regression Coefficients for Absolute Differences Between 

Capacity Measures ....................................... 13 

Table 8 Regression Coefficients for Ratios of Capacity Measures .......... 14 

Conclusion ........................................................... 14 

Table 9 Regression Coefficients for Estimates of Capacity Measures ....... 15 

Section 2 Fiscal Capacity Charts: State by State .......................... 17 

Alabama ......................................................... 18 

Alaska .......................................................... 19 

Arizona ......................................................... 20 

Arkansas ........................................................ 21 

California ........................................................ 22 

Delaware ........................................................ 23 
Colorado ........................................................ Connecticut ...................................................... Washington. DC ................................................... Florida .......................................................... Georgia ......................................................... Hawaii .......................................................... Idaho ........................................................... Illinois .......................................................... Indiana ......................................................... Iowa ............................................................ Kansas .......................................................... Kentucky ........................................................ Louisiana ........................................................ Maine ........................................................... Maryland ........................................................ Massachusetts .................................................... Michigan ........................................................ Minnesota ....................................................... Mississippi ....................................................... Missouri ......................................................... Montana ........................................................ Nebraska ........................................................ Nevada .......................................................... NewHampshire ................................................... NewJersey ...................................................... NewMexico ...................................................... NewYork ........................................................ NorthCarolina .................................................... NorthDakota ..................................................... Ohio ............................................................ Oklahoma ....................................................... Oregon .......................................................... Pennsylvania ..................................................... RhodeIsland ..................................................... SouthCarolina .................................................... SouthDakota ..................................................... Tennessee ....................................................... Texas ........................................................... Utah ........................................................... Vermont ......................................................... Virginia ......................................................... Washington ...................................................... WestVirginia ..................................................... Wisconsin ....................................................... Wyoming ........................................................ 

Section 3 Fiscal Capacity Tables: Revenue Base by Revenue Base .......... Table 3-1 The Representative Tax System-1985 ....................... Tabb 3-2 The Representative Revenue System- 1985 .................... Table 3-3 General Sales and Gross Receipts Taxes- 1985 ................. Table 3-4 Total Selective Sales Taxes- 1985 ........................... Table 3-5 Selective Sales: Parimutuel Taxes- 1985 ...................... Table 3-6 Selective Sales Taxes: Motor Fuels- 1985 ..................... Table 3-7 Selective Sales: Insurance Premiums-1985 ................... Table 3-8 Selective Sales: Tobacco Products-1985 ...................... Table 3-9 Selective Sales: Amusements- 1985 .......................... Table 3-10 Selective Sales Taxes: Public Utilities-1985 ................... 
Table 3-11 

Table 3-12 

Table 3-1 3 

Table 3-14 

Table 3-15 

Table 3-1 6 

Table 3-1 7 

Table 3-18 

Table 3-1 9 

Table 3-20 

Table 3-21 

Table 3-22 

Table 3-23 

Table 3-24 

Table 3-25 

Table 3-26 

Table 3-27 

Table 3-28 

Table 3-29 

Table 3-30 

Table 3-31 

Table 3-32 

Table 3-33 

Table 3-34 

Table 3-35 

Table 3-36 

Selective Sales: Alcoholic Beverages. Total- 1985 ............... Alcoholic Beverages Tax: Distilled Spirits- 1985 ................ Alcoholic Beverages: Beer- 1985 ............................ Alcoholic Beverages Tax: Wine- 1985 ........................ All License Taxes-1985 .................................. License Taxes: Motor Vehicle Operators-1985 ................. License Taxes: Corporations- 1985 .......................... License Taxes: Hunting and Fishing- 1985 .................... License Taxes: Alcoholic Beverage Sales-1985 ................. License Taxes: Motor Vehicle Registrations. Total-1985 ......... License Taxes: Motor Vehicle Registrations. Automobile-1985 .... License Taxes: Motor Vehicle Registrations. Trucks-1985 ........ Personal Income Taxes- 1985 .............................. Corporation Net Income Taxes- 1985 ........................ All Property Taxes- 1985 ................................. Property Taxes: Residential and Farm-1985 .................. Property Taxes: Commercial/Industria1 and Public Utilities-1985 . . Estate And Gift Taxes- 1985 ............................... Total Severance Taxes- 1985 ............................... Severance Taxes: Oil And Gas- 1985 ......................... Severance Taxes: Coal- 1985 ............................... Severance Taxes: Nonfuel Minerals- 1985 ..................... AllOtherTaxes-1985 .................................... Rents and Royalties- 1985 ................................ Payments Under The Mineral Leasing Act- 1985 ............... User Charges- 1985 ...................................... 

Appendix A Alternative Measures of Fiscal Capacity and Their Uses ....... ~esofFiscalCapacityIndices ......................................... Comparison of the Indices .............................................. Availability ......................................................... Currency of the Data .................................................. SubstateAreas ....................................................... Comprehensiveness ................................................... Figure 1 Prominent Features of the Fiscal Capacity Measures: 

A Comparative Description ................................ Individuals' Taxpaying Ability versus Governments' Revenue-Collecting Potential ... Components of the Fiscal Capacity Measures ............................... Concepts of the Underlying Revenue Source ................................ Per Capita Personal Income ............................................ Definitions and Alternative Sources ...................................... State-Local Tax Deductibility ........................................... Lack of Comprehensiveness ............................................. GrossStateProduct ................................................... Definition .......................................................... Components ......................................................... Conclusion .......................................................... TotalTaxableResources ............................................... Figure 2 The Components of Total Taxable Resources and the Components of 

Gross State Product and Personal Income It Includes ............ 

Export ................................................ -Adjusted Income 

The Representative Tax System and the Representative Revenue System ..... The Uses .................................... of Fiscal Capacity Measures 
RegionalAnalysis .................................................... Chart 1 Uses of Capacity Measures ................................. RegionalPolicy ...................................................... Comparative Fiscal Policy Analysis ....................................... Fiscal Equalization Policy .............................................. 

Appendix B Tax Base Definitions. Tax Bases. and Sources for the 

1985 RTS and RRS Fiscal Capacity Estimates ......................... RTSBases ............................................................ 1 . General Sales or Gross Receipts Taxes ................................ 2 . Selective Sales and Gross Receipts Taxes .............................. 2A . MotorFuels ................................................. 2B . Alcoholic Beverages ............................................ 2C . TobaccoProducts ............................................. 2D . Insurance ................................................... 2E . Public Utilities ............................................... 2F . Parimutuels ................................................. 2G . Amusements ................................................. 3 . LicenseTaxes ................................................... 3A . Motor Vehicles ............................................... 3B . Motor Vehicle Operators ........................................ 3C . Corporations ................................................. 3D . Alcoholic Beverages ............................................ 3E . Hunting and Fishing Licenses .................................... 4 . Individual Income Tax ............................................. 5 . Corporate Income Tax ............................................. 6 . PropertyTaxes .................................................. 6A . Residential Property ........................................... 6B . Commercial and Industrial Property ............................... 6C . Farm Real Estate ............................................. 6D . Public Utilities ............................................... 7 . Estate and Gift Taxes ............................................. 8 . SeveranceTaxes ................................................. Additional Bases for the RRS ........................................... 9 . AllOtherTaxes .................................................. 10 . RentsandRoyalties ............................................... 11 . Payments under Mineral Leasing Act ................................. 12 . Usercharges .................................................... 

Appendix C Summary Tax Tables for Past Years .......................... Table C-1 1975-All RTS Taxes ..................................... Table C-2 1977-All RTS Taxes ..................................... Table C-3 1979-A11 RTS Taxes ..................................... Table C-4 1980-All RTS Taxes ..................................... Table C-5 1981-All RTS Taxes ..................................... Table C-6 1982-All RTS Taxes ..................................... Table C-7 1983-All RTS Taxes ..................................... Tdle C-8 1984-All RTS Taxes ..................................... 


Section 1 

Introduction and Overview 

With the publication of this report (one of a series 

entitled Tax Capacity of the States), ACIR continues its 

tradition of providing data and commentary intended 

to stimulate, enlarge and advance the public debate on 

the key issue of state fiscal capacity. Interstate differences in fiscal capacity-at times amounting to disparities-have been discussed since the beginning of the 

century, but they have attracted increased attention 

with the growth of the federal government's role in the 

United States after World War 11. More recently, the 

decline in direct federal aid to state and local governments has renewed interest in the fiscal capacity of 

state areas. 

Over more than 20 years, a series of ACIR information reports has emphasized both the inadequacies of 

per capita personal income as a measure of the revenue 

capacity of state-local governments, and the need to 

build a better yardstick for taking that measure. 

ACIR's earliest report on this subject dates back to 

1962. That report was the first to present an alternative-the Representative Tax System (RTSI-for 

measuring fiscal capacity. More recently, in the report 

published in 1985, ACIR developed the Representative 

Revenue System (RRS), which is a parallel measure 

that shows the capacity to collect nontax revenues, 

such as user charges.' 

The RTS and the RRS are designed to answer this 

question: What would be a state area's collections if its 

governments applied identical rates-national averages-to each of 26 commonly used tax bases (for the 

RTS) and an additional four bases for the RRS? 

The present volume publishes ACIR's estimates of 

fiscal capacity for 1985, using the Representative Tax 

and Revenue Systems. As with past reports, RTS and 

RRS estimates are compared to a capacity index based 

on per capita personal income. As was done with the 

previous year's report, indices based on new approaches-Gross State Product (GSP) and Total Taxable Resources (TTR)-are also discussed. Table 1 

shows scores on each of these indices, as available, by 

region for the period from 1981 to 1985. AppendixA 

also considers Export-Adjusted Income (EAI). 

ACIR's information reports have emphasized the 

advantages of the RTS and RRS as comprehensive and 

practical measures of fiscal capacity. Yet fiscal capacity 

indicators are as difficult to measure as they are important to use. It is essential to understand the conceptual 

background underlying fiscal capacity measurement, 

the strengths and weaknesses of each indicator, the 

cautions that should govern the indicators' use, and the 

relationship between the various uses of fiscal capacity 

indicators and the choice of indicators. 

There are four major uses for indicators of fiscal capacity: 

Comparative Fiscal Analysis. Capacity 

measures and their components are used to 

compare the mix of taxes and other revenue 

sources used by state and local governments, 

and to compare their reliance on specific revenue sources. Key in this comparison is also 

computing tax effort: namely, revenues collected relative to tax bases. 

Regional Economic Analysis. Capacity 

measures help monitor and compare trends in 

states' economic well-being. 

Regional Economic Policy. A related use of 

capacity measures is to provide background information or specific factors in grant formulas 

to aid chronically depressed areas and to counteract the more episodic, regionally focused recessions that have occurred especially in recent 

times. 
Table 1 

State Scores on the Five Fiscal Capacity Indices, by Region, 1981 -85 

PC1 Scores 

81 82 83 84 85 

GSP Scores 

81 82 83 84* 

T T R Scores 

81 82 83 84* 

RTS Scores RRS Scores 

101 101 102 101 

New England 

Connecticut 

Maine 

Massachusetts 

New Hampshire 

Rhode Island 

Vermont 

Mideast 

Delaware 

Washington, DC 

Maryland 

New Jersey 

New York 

Pennsylvania 

Great Lakes 

Illinois 

Indiana 

Michigan 

Ohio 

Wisconsin 

Plains 

Iowa 

Kansas 

Minnesota 

Missouri 

Nebraska 

North Dakota 

South Dakota 

Southeast 

Alabama 

Arkansas 

Florida 
Southeast (cont.) 

Georgia 85 87 89 90 90 

Kentucky 81 82 80 81 78 

Louisiana 91 90 87 85 81 

Mississippi 69 70 69 69 66 

North Carolina 82 82 84 85 84 

South Carolina 77 77 79 79 76 

Tennessee 81 81 81 81 81 

Virginia 100 102 104 104 105 

WestVirginia 80 80 78 76 74 

Southwest 

Arizona 93 91 92 93 92 

New Mexico 83 84 82 80 79 

Oklahoma 98 100 93 91 88 

Texas 102 102 99 98 97 

Rocky Mountain 

Colorado 109 110 109 108 107 

Idaho 85 81 81 79 80 

Montana 88 87 86 82 79 

Utah 79 78 77 76 76 

Wyoming 114 108 100 96 95 

Far West 

California 115 114 114 113 116 

Nevada 111 108 106 104 104 

Oregon 94 91 92 91 91 

Washington 107 105 104 100 100 

Alaska 142 152 149 137 131 

Hawaii 105 105 106 102 100 

*Gross State Product (GSP) and Total Taxable Resources (TI'R) not yet available fdi 1985. 

Source: ACIR staff compilation. 
Fiscal Equalization. Capacity measures are 

used in federal grant formulas that are designed to provide greater assistance per capita 

to those states with less ability to raise taxes 

from their own sources. 

OUTLINE OF THIS REPORT 

Below, Section 1 provides a description of the RTS 

and RRS, presents the estimates for 1985 along with a 

discussion of recent changes in states' fiscal capacities, 

and compares the two ACIR indices to other measures 

of fiscal capacity. Section 2 uses the RTS, the RRS, and 

their components to chart each state's fiscal capacity, 

along with changes in RTS tax capacity and tax effort. 

While Section 2 is arranged by state, Section 3 is organized by revenue base. Section 3 presents a table for each 

of 26 tax bases in the Representative Tax System. An 

additional four revenue bases, added to the previous 26, 

form the Representative Revenue System. 

Appendix A discusses the conceptual basis for 

measuring fiscal capacity, the uses of such indicators, 

the design and construction of alternatives to the RTS 

and RRS, as well as the comparative advantages and 

disadvantages of each indicator. Appendix B details the 

methods used in RTS and RRS estimation whileAppendix C contains summary RTS tables for all past years. 

THE REPRESENTATIVE TAX SYSTEM 

AND THE 

REPRESENTATIVE REVENUE SYSTEM: 

PRELIMINARIES 

The RTS and RRS are yardsticks for measuring the 

fiscal capacity of each of the 50 state-local fiscal systems, plus Washington, DC. They provide absolute and 

relative measures of the hypothetical ability of the 

states to raise tax revenues, assuming every state applied identical rates to each of the commonly used tax 

bases. The RTS and RRS also measure tax effort, or a 

state's actual revenues relative to its hypothetical fiscal 

capacity. 

Tax Capacity 

The Representative Tax System method defines 

"tax capacity" as the dollar amount of revenue that 

each state would raise if it applied a nationally uniform 

set of tax rates to a common set of tax bases. (The RRS 

expands this definition.) The RTS and RRS are "representative" in that national average tax rates are applied 

in each state to standardized tax or other revenue 

bases. Because the same tax rates are used for every 

state, estimated yields vary only because of differences 

in the underlying bases. As with other capacity measures, the RTS is not concerned with individual state-local fiscal choices, such as whether or not a state utilizes 

a particular tax base. However, by using the national 

average tax rates for each base, and thereby weighting 

the importance of one base relative to all others, the 

RTSIRRS approach implicitly yields a result that depends on the "average" choices made by all states and 

localities, taken together. It is an index based on average behavior in the aggregate. The capacity measure 

pertains only to the level of economic resources in any 

state, resources that by common practice may be said 

to be potentially taxable whether or not the particular 

state actually taxes those resources and regardless of 

the intensity with which a state utilizes those taxable 

resources. 

Estimates of all bases commonly subject to state 

and local levies are used in the RTSIRRS calculations of 

tax capacity. Table 2 provides a breakdown of the 26 

bases in the RTS, the four bases added to form the RRS, 

as well as the amount of nationwide revenue each generates and the average tax rate for each base. The estimated total state-local tax yields reflect the intensity of 

use of the various tax bases on a national basis, thereby 

avoiding reliance on arbitrary weights by simply adding 

together billions of dollars in property values, millions 

of dollars in income, and so forth. Appendix B provides 

a detailed description of each base and the data sources 

used in developing the RTS and RRS for 1985. 

Tax Effort 

Using RTS and RRS, the tax capacity and tax effort 

measures are complementary in that capacity measures a state's tax base while effort indicates the overall 

tax burden placed on that base. 

The tax effort index for a state is calculated by dividing the state's actual tax collections by its estimated 

tax capacity and multiplying by 100. The result may be 

interpreted as a measure of how much that state 

chooses to exploit all its potential tax bases relative to 

other states. If a state has a tax effort beneath the national norm, it will have an effort index under 100. An 

index of 115, for example, indicates that tax effort is 

15% above the national average. 

Tax effort, like tax capacity, can also be measured 

for each tax or nontax revenue base. The base-specific 

measures of tax effort test how intensively a state uses 

each tax base compared to all other states. Because the 

RTS and RRS use standardized rates applied to standardized bases, the resulting tax effort measures give 

comparability among states that simple comparisons of 

statutory tax rates do not. For every state, sales tax effort, for example, is measured relative to retail sales 

(excluding food and drugs) whether or not a state actually exempts these or other items from the tax. A simple comparison of statutory sales tax rates can mislead 

because it does not take into consideration the great 

variation in the composition of the various state sales 

tax bases. 

Section 2 shows graphically for each state the 

trends in tax capacity and tax effort over time. Together, the two indices provide a summary of the general fiscal status of each state. However, the change in a 

state's tax effort over time results from change in 

either its tax revenues or its tax capacity. Thus, even if 
Table 2 

Information Used to Compute the Representative Tax and Revenue Rates of State and Local Governments, 1985 

EkYmaEu 

General Sales and 

Gross Receipts Taxes 

Selective Sales Taxes 

Parimutuel 

Motor Fuel 

Insurance 

Tobacco 

Amusement 

Public Utilities 

Distilled Spirits 

Beer 

Wine 

License Taxes 

Vehicle Operator 

Corporation 

Hunting and Fishing 

Alcoholic Beverages 

Automobile 

Truck 

Personal Income Taxes 

Corporation Income Taxes 

Property Taxes 

Residential 

Farm 

Commercial/Industrial 

Public Utilities 

Estate and Gift Taxes 

Severance Taxes 

Oil and Gas 

Coal 

Nonfuel Mineral 

RTS SUBTOTAL 

Other Taxes 

Rents and Royalties 

Mineral Leasing 

User Charges 

RRS TOTAL 

State-Local Tax Collections 

Billions of 

Dollars 

Percent of 

w 

Amounts in 

Millions 

$1,187,582 

15,588 

122,560 

$276,520 

28,464 

$52,043 

$290,993 

416 

182 

569 

157 

4 

63 

< I* 

13 1 

37 

$366,435 

$197,801 

$3,968,640 

$690,138 

$2,193,999 

$614,345 

$6,852 

$104,378 

$22,037 

$23,976 

$3,310,543 

$3,207 

$550 

$3,3 10,543 

Details of Revenue Base 

Re~resentative 

Retail sales and receipts of selected service industries 7.1% 

Parimutuel turnover from horse and dog racing 4.6% 

Fuel consumption in gallons $. lllgal. 

Insurance premiums: life, health, property, and liability 1.6% 

Cigarette consumption in packages 

Recei~ts of amusement and entertainment businesses 

Revenues: electric, gas, and telephone companies 

Consumption of distilled spirits, in gallons 

Consumption of beer in barrels 

Consumption of wine in gallons 

Motor vehicle operators' licenses 

Number of corporations 

Number of hunting and fishing licenses 

Licenses for the sale of distilled spirits 

Private automobile registrations 

Private truck registrations 

Federal income tax liability 

Corporate profits 

Market value of residential property 

Market value of farm real estate 

Net book value of inventories, property, industrial plant, 

and equipment of corporations 1.3% 

Net book value of fi'i'ed assets for electric, gas, and 

telephone companies 1.4% 

Federal estate and gift tax liability 34.3% 

Value of oil and gas production 

Value of coal production 

Value of nonfuel mineral production 

Personal income 

Receipts from rents and royalties 

Actual federal payments 

Personal income 

*For actual figure, see Table 3-19. 

Note: Detail may not add to totals owing to rounding. 

Source: ACIR staff compilations. 
their revenues have remained in step with the national 

average, some states, such as those in the Midwest, 

might have rising tax efforts simply because their capacities have declined. 

The Case for the RTS and RRS 

changes in capacity and tax effort in states experiencing economic growth and economic decline. Three indicators of fiscal capacity are used: Per Capita Income 

(PCI), the Representative Tax System (RTS), and the 

Representative Revenue System (RRS). The extent of 

agreement or disagreement among alternative fiscal 

The RTS and RRS are detailed, comprehensive, yet 

intuitively understandable measures of fiscal capacity-the ability to raise revenues for public services. 

They strike a balance between two extremes: They are 

neither so theoretical and dificuIt to explain that they 

lose their intuitive appeal in the political forum, nor are 

they so oversimplified and rooted in the current tax 

practice of any one state as to provide no policy guidance. In Canada, the RTS is used in the formula that 

distributes federal equalization aid to the provinces. 

The RTS and RRS are the only indices of fiscal capacity that allow interstate comparison of tax capacity 

and utilization on a disaggregated tax-by-tax basis. As 

shown by the lower graphs in the pages of Section 2, 

policymakers can see at a glance how, relative to other 

taxes and other state-local systems, a particular state is 

"under-utilizing" or i'over-working" individual taxes. 

The RTS and RRS are also useful tools for federal 

Table 3 

Comparison of 1985 RTS and Per Capita 

lncome Indices for 

Five Major, Mineral-Exporting States 

1985 Difference 

1985 Per Capita In Index 

State RTS Index Income Index Points 

Alaska 259 131 128 

Wyoming 169 95 74 

Nevada 146 104 42 

Texas 111 97 14 

Oklahoma 105 88 17 

Source: Analysis by J. Fred Giertz and David L. Chicoine of 

ACIR staff compilation. 

policymakers. Indices of interstate fiscal differences 

are employed in equalizing formulas for numerous federal grants, including Medicaid and vocational educa- capacity measures among states is for 1985. 

tion, to name just a few. Because the RTS and RRS Next is a statistical analysis of those factors that are asmeasure state tax wealth more comprehensively than sociated with differing capacity scores. The latter 

Per capita personal income, they provide a better basis analysis employs data for 1984, which is the latest year for interstate fiscal equalization. In addition to the for which five measures commonly used are availstrengths previously mentioned, an advantage of the able: the three mentioned above, plus Gross State 

RTS and RRS is their incorporation of tax exporting. Product (GSP) and Total Taxable Resources (TTR). 

INCLUSION OF TAX EXPORTATION 

RTS and RRS offer a more accurate measure of fiscal capacity than residents' per capita income because 

they capture states' opportunities to export taxes-the 

ability to collect taxes from nonresidents.2 The ability 

to export taxes depends, for example, on how much of a 

state's tax base lies in industries that can pass on taxes 

(such as severance taxes) to nonresidents, and on the 

amount of taxes (such as sales taxes in tourist areas) a 

state receives which are paid directly by nonresidents. 

In sharp contrast, per capita income ignores tax exportation and thereby understates the fiscal capacity of a 

tourist-rich state such as Nevada or an energy-rich 

state such as Wyoming. This is shown in Table 3, which 

compares the RTS and PC1 indices for five mineral-exporting state^.^ 

See Appendix A for a discussion of measuring tax 

exportation. 

ANALYSIS OF THE 1985 ESTIMATES 

Below, the state fiscal capacity scores for 1985 are 

presented in Table 4, accompanied by a discussion of 

Regional Patterns of Fiscal Capacity 

Most states in New England and the Mideast region had above-average capacities in 1985 by all measures. Table 4 shows PCI, RTS, and RRS measures of fiscal capacity for all states organized into regions. These 

are the only capacity scores available for 1985. Map 1 

depicts RTS scores for 1985; Map 2, the change from 

1984 to 1985: that is, the latter score minus the former. 

The relative strength of state economies in New 

England and the Mideast region accounts for the fiscal 

strength of most of those states. This strength is particularly evident in PCI. Of the 11 states and Washington, DC, in these two regions, only Maine, Vermont and 

Pennsylvania have capacity scores below the national 

average for PCI, RTS and RRS. However, these three 

states are close to or above 90% of the national average 

for most capacity measures. 

The Far West states, including Alaska and Hawaii, 

are also at or above the national average in fiscal capacity measured by the three methods. The exception is 

Oregon, which is reported at 5-9% below the national 

average, depending on the capacity measure. Washington is very close to the national average in all measures. 
States by Region 

New England 

Connecticut 

Maine 

Massachusetts 

New Hampshire 

Rhode Island 

Vermont 

Mideast 

Delaware 

Washington, DC 

Maryland 

New Jersey 

New York 

Pennsylvania 

Great Lakes 

Illinois 

Indiana 

Michigan 

Ohio 

Wisconsin 

Plains 

Iowa 

Kansas 

Minnesota 

Missouri 

Nebraska 

North Dakota 

South Dakota 

Southeast 

Alabama 

Arkansas 

Florida 

Georgia 

Kentucky 

Louisiana 

Mississippi 

North Carolina 

South Carolina 

Tennessee 

Virginia 

West Virginia 

Southwest 

Arizona 

New Mexico 

Oklahoma 

Texas 

Rocky Mountain 

Colorado 

Idaho 

Montana 

Utah 

Wyoming 

Far West 

California 

Nevada 

Oregon 

Washington 

Alaska 

Hawaii 

Table 4 

Regional Variation in Fiscal Capacity for 1985* 

Per Capita 

Personal 

Income 

Score (PCI) Rank 

Representative 

Tax 

System 

Score (RTS) Rank 

*U.S. Average = 100 

Source: Analysis by J. Fred Giertz and David L. Chicoine of ACIR staff compilation 

Representative 

Revenue 

System 

Score (RRS) Rank 

Increase 

+2 and over 

Map 2 

Changes in the RTS Fiscal Capacity Scores from 1984 to 1985 

-3 or greater decrease 

Decrease 

Source: ACIR staff calculations. 
The still significant energy sector in Alaska and the 

tourist economy of Nevada are reflected in the RTSI 

RRS measures exceeding PC1 by a substantial amount 

in these two states. Hawaii is similar to Nevada, but 

with less difference between the PC1 and the RTSIRRS 

measures of capacity. The strong position of California 

evidences that state's general economic strength (PC1 

= 116, RTS =120, RRS = 119). 

Mississippi ranks 51st in PC1 and in the RTSIRRS 

capacity measures. It is followed by Arkansas, Alabama, South Carolina, West Virginia, and Kentucky as 

the six states with the nation's lowest fiscal capacity. 

Between Florida and Virginia and the six weakest 

states are Tennessee, North Carolina and Louisiana. 

The energy sector in Louisiana pushes the RTSIRRS 

measures of capacity close to the national average. In 

contrast, the PC1 score for Louisiana is about 20% below the national norm. 

Positioned between the strength of the Northeast, 

Mideast, and the Far West states, and the general 

weakness in the southeastern states are the heartland 

regions of the Plains, the Great Lakes, the Rocky 

Mountains, and the Southwest. Exceptions again are 

those states with substantial energy sectors-Colorado 

and Wyoming in the Rockies and Texas and Oklahoma 

in the Southwest. These states resemble the other 

heartland states in their PCI, but have above-average 

RTSIRRS scores. In addition, Montana, New Mexico 

and North Dakota have RTSIRRS fiscal capacity measures above their respective PCIs because of the energy 

resources within their boundaries. 

In contrast to the Northeast, the Mideast and the 

Far West, states in the Southeast are, in general, the 

poorest in terms of relative fiscal capacity. This holds 

whether the PC1 or the RTSIRRS methods are used to 

evaluate economic conditions. Almost half of the states 

in this region have capacities 20% or more below the national average. The two exceptions are Florida and Virginia, which have fundamentally different economies 

from those of the other southeastern states. In addition, changes in the fiscal capacity of Georgia, particularly in PCI, during the 1980s reflect the changes underway in that state's economy. By 1985, the fiscal capacity of Georgia was only 10% below the national average. 

The nonenergy states in the heartland regions have 

economies dominated by traditional manufacturing 

and agriculture, which are recovering slowly from the 

economic downturn of the early 1980s. Among these 

states, the more agricultural ones have less tax wealth, 

per capita, than the manufacturing states. Idaho and 

Utah in the Mountain region and South Dakota and 

Iowa in the Plains have capacities that are 20% or more 

below the national average. Minnesota and Illinois, on 

the other hand, are very close to the national average, 

with the other heartland states having capacities less 

than 10% below the national average. 

The overall regional pattern of fiscal capacity in 

1985 continues the general economic trends of the 

1980s, with the Northeast and Far Western states having above-average capacity measures. In addition, the 

energy states also have higher capacity when measured 

by the RTSIRRS approach. The states from the four 

heartland regions generally have below-average scores, 

but their scores are considerably higher than states in 

the Southeast. The range of the RTSIRRS scores is 

wider than the PCI, as expected, producing a more dramatic picture of variation in fiscal capacity among 

states and regions. 

Fiscal Capacity Changes and 

Fiscal Effort 

Changes in fiscal capacity come from economic 

change. Such changes may also induce changes in tax 

effort. The link between changes in fiscal capacity and 

changes in tax effort is displayed in Table 5. This table 

presents changes in PC1 and RTS between 1981 and 

1985 and the associated changes in relative tax effort 

for two groups of states. The first group comprises the 

ten states with the largest increase in PC1 from 1981 to 

1985; the second group contains the 11 states with the 

largest decrease in PC1 in that period. 

States from New England and the Mideast dominate the group with increased PCI, while states with decreases are located in the Plains (3 states), the Southeast (2), the Southwest (11, the Rocky Mountain (2) and 

the Far West (2)region plus Alaska. Half of the second 

group of states has economies dominated by energy or 

agriculture. 

Membership in the two groups of states would 

change little if defined by RTS rather than PCI. Generally, the RTS measure varies more with economic 

change than PCI, showing larger index point increases 

and decreases. The two groups show the growingdifferentials in tax wealth among states as the national economy recovers from the 1981-83 recession. Implied from 

the states in Table 5 is the unchanged relative fiscal position of states not listed. Smaller increases and declines were experienced by states in the Southeast, the 

Plains, and the Great Lakes regions. 

As expected, strengthened fiscal capacity is linked 

to reduced tax effort and weakened capacity is linked to 

increased relative tax effort. All the growing states had 

lower tax effort scores in 1985 than in 1981, and all declining states had higher relative tax efforts, with the 

exception of Alaska. 

Hidden in the changes in tax effort scores are the 

substantial modifications of state taxes that were made 

during this period, particularly in 1983. Legislated tax 

rate increases in declining states will add to their tax effort indexes. On the other hand, augmented collections 

in growing states tend to exert a downward pressure on 

calculated tax effort-in those states, reduced or stable 

tax rates will also contribute to the decline in tax effort. 

Income or sales tax increases were adopted in 1982 

or 1983 in six of the states with declining economies; 

several had additional increases in 1984. New Jersey 

and Rhode Island were the only growing states to 
State 

Table 5 

1981-85 Changes in Fiscal Capacity: Tax Effort 

Region 

Ten States With Largest increase In PCI* 

Massachusetts 

New Hampshire 

New Jersey 

New York 

Connecticut 

Maryland 

Georgia 

Maine 

Virginia 

Rhode Island 

New England 

New England 

Mideast 

Mideast 

New England 

Mideast 

Southeast 

New England 

Southeast 

New England 

Eleven States With Largest Decrease in PCI** 

Wyoming 

North Dakota 

Alaska 

Oklahoma 

Montana 

Iowa 

Louisiana 

Washington 

Nevada 

Kansas 

West Virginia 

Rocky Mountain 

Plains 

- 

Southwest 

Rocky Mountain 

Plains 

Southeast 

Far West 

Far West 

Plains 

Southeast 

Per Capita 

Personal Representative 

income Tax System 

(PCI) (RTS) Tax Effort 

*If RTS were used instead of PCI, the ordering would change slightly and Delaware and Hawaii would replace Virginia and Rhode Island. 

**Eleven states listed because of ties. If RTS were used instead of PCI, the ordering would change slightly and Texas 

and New Mexico would replace Washington and Nevada. Kansas and West Virginia are tied for tenth. 

Source: Analysis by J. Fred Giertz and David L. Chicoine of ACIR staff compilation. 

increase rates on income or sales taxes in these years. 

However, 1984 and 1985 were characterized more by 

tax decreases than by increases, particularly income 

tax decreases in states with progressive income taxes 

and high marginal rates. New York and Massachusetts, 

for example, reduced personal income taxes significantly in 1985. The rate and capacity changes help explain declines in tax effort in growing states and increases in tax effort in declining states. 

Reduced fiscal capacity can be also responded to by 

relying more heavily on nontax revenues, such as user 

charges. Although long time series on relative effort for 

user charges are not available, all of the decliningstates 

made above average use of user charges in 1985. The 

range for the declining states was from 98% above the 

national average in Alaska to 4% above the national average in Kansas and West Virginia. In contrast, in 1985, 

of the growing state, only Georgia had a user charge effort index above the national average. All of the other 

growing states had scores that ranged from 49% less 

than the national average in Connecticut to 5% below 

the national average in Virginia. 

Variation Among 

Alternative Capacity Measures 

Considerable attention has been focused on alternative measures of the fiscal capacity of state and local 

governments in the United States. This discussion focuses on differences in the components of the various 

measures as well as the appropriateness of alternative 

measures for various purposes, such as fiscal equalization or redistribution, comparative tax burden analysis, and regional economic well-being. 

We analyze the interrelationship among the five 

most often used and readily available measures of fiscal 

capacity: Per Capita Income-PCI, Gross State Product-GSP, Total Taxable Resources-TTR, the Representative Tax System-RTS, and the Representative 
Revenue System-RRS. Variations in these alternative 

measures for the same state at a particular point in 

time are examined. First, we determine the extent to 

which the five measures are correlated with one another. Then, another analysis is conducted to identify 

the reasons for interstate variation in the various measures. 

The correlation analysis shows that there is considerable variation among the capacity indices-even 

among those that are thought to measure the same phenomenon. This analysis also confirms the prior categorization of the five measures into two broad groupsone representing the revenue potential of governments 

and the other representing the ability of citizens to pay 

taxes.4 In most cases the variation among alternative 

measures can be explained by factors-such as the differential capacity to export taxes-that are suggested 

by prior theoretical exploration. 

CORRELATION ANALYSIS 

The familiar pairwise coefficients of correlation for 

the five measures of fiscal capacity were calculated for 

1984; details are presented in Tables 6 through 9. We 

used 1984 rather than 1985 values because all five 

measures are available for 1984 while only PCI, RTS, 

and RRS are available for 1985. There is no reason to 

believe, however, that the results for 1984 are not applicable to 1985 and beyond. 

The coefficient of correlation measures the closeness of the relationship between two variables (more 

technically, the degree of straight-line association). 

The coefficient is positive if large values of one variable 

are associated with large values of the other, and negative if an inverse relationship exists. The coefficient can 

vary from -1 to + 1, with zero showing no systematic relationship between two measures (intuitively, the two 

variables are independent of each other) while a -1 or 

+ 1 indicates that one variable is a perfect "predictor" 

of the other. The higher the value of the coefficient, 

whatever its sign, the closer is the relationship between 

the two measures. 

Table 6 

Coefficients of Correlation Between 

Alternative Capacity Measures 

RTS RRS PC1 GSP TTR 

RTS 1.00 .94 .42 .40 .33 

RRS 1.00 .34 .38 .30 

PC1 1.00 .63 .68 

GSP 1.00 .97 

TTR 1.00 

Note: Only the upper half of this table is shown. The lower half 

is identical, since the correlation of RTS with RRS is the 

same as the correlation of RRS with RTS. 

Source: Analysis by J. Fred Giertz and David L. Chicoine of 

ACIR staff compilation. 

Examining Table 6, all the measures are positively 

correlated with one another, as might be expected. Previous analysis has placed the five measures into two 

broad categories. RTS and RRS are considered measures of state and local governments' revenue-collecting 

potential. PCI, GSP, and TTR are measures of individual citizens' ability to pay taxes. The correlation analysis seems to confirm this distinction. RTS and RRS are 

highly correlated with each other ( + .94) while thevarious correlations between these two measures and the 

other three measures are considerably weaker (in the 

range of .30 to .42). In the second category, GSP and 

TTR are very highly correlated with each other (.97) 

while PC1 is somewhat less closely associated with 

either GSP or TTR. 

This preliminary correlation analysis suggests that 

RTS and RRS are virtually interchangeable as measures of capacity, as are GSP and TTR. 

The fact that PC1 is not closely correlated with any 

of the other measures of capacity indicates that these 

measures are in fact providing new information. If PC1 

were closely correlated with the other measures (e. g., 

coeficients in the .90 to 1.0 range), there would belittle 

reason to devote resources to develop and compile alternative measures of fiscal capacity. 

FACTORS UNDERLYING DISAGREEMENT IN 

CAPACITY SCORES 

There obviously exists a precise, accounting-like 

relationship among the five measures of fiscal capacity. 

By dividing each measure into its component parts, 

variations can be explained based on the similarities or 

differences of the components. It is instructive, however, to attempt to explain these differences more concisely by using readily available data that captures the 

major differences in the measures of capacity. 

Regression analysis was used to explain pair-wise 

indicators of variation in capacity scores across the 50 

states and Washington, DC, based on each state's mineral income, travel expenditures, poverty level, and 

population density. Multiple regression analysis examines the relationship between an independent variable 

and the combined effects of several explanatory variables. One indicator of variation used here is the absolute difference between the two capacity measures, 

while the other indicator is the ratio of one capacity 

measure to another. Because there are five different capacity measures, there are ten pair-wise indicators of 

variation in capacity scores. 

To explain the absolute variations (Table 79, a regression equation was estimated for each of the ten interrelationships and the four explanatory variables 

(mineral income, travel expenditure, poverty level, and 

population density). Most of the interstate variation in 

these indicators of disagreement in fiscal capacity 

scores can be explained through these three simple 

variables. The results also confirm many of the observations presented in less rigorous form in earlier analyses as well as providing some new insights. 
Table 7 

Regression Coefficients for 

Absolute Differences Between Capacity Measures 

Dependent 

Variable 

RTS-PI 

RRS-PI 

GSP-PI 

TTR-PI 

RRS-RTS 

GSP-RTS 

TTR-RTS 

RRS-GSP 

TTR-GSP 

TTR-RRS 

Population 

Density 

.0019791 

(2.17) 

.002827 

(1.45) 

.017170 

(17.76) 

.016367 

(20.17) 

.000609 

(.42) 

.017498 

(13.2) 

.017407 

(14.77) 

.Ol8496 

(10.46) 

.000471 

(.96) 

.018212 

(9.78) 

Mineral 

Income 

.039233 

(23.30) 

.069139 

(19.11) 

.016519 

(9.23) 

.011310 

(7.54) 

.028308 

(10.70) 

.021139 

(8.66) 

.027405 

(12.58) 

.050880 

(15.55) 

.004475 

(4.91) 

.057369 

(16.65) 

Travel 

Expenditure 

.042591 

(5.89) 

.03321 

(2.14) 

.019252 

(2.51) 

.020265 

(3.14) 

.014465 

(1.27) 

.071469 

(6.82) 

.069271 

(7.40) 

.061257 

(4.36) 

-.00306 

(-.78) 

.059994 

(4.06) 

Poverty 

Rate 

-.095486 

(-3.52) 

-.I21868 

(-2.09) 

.0073987 

(26) 

.0231906 

(1.04) 

-.021335 

(-.50) 

-.008707 

(-.22) 

-.015551 

(-.44) 

-.033997 

(-.OM) 

-.019548 

(-1.33) 

-.035790 

(-.MI 

Note: "t" values in parenthesis. These indicate the statistical reliability of each figure. "t" values greater than + 2 (or smaller than -2) indicate statistically reliable results. 

Sources: Analysis by J. Fred Giertz and David L. Chicoine of ACIR staff compilation of fiscal 

capacity indices. The remaining data are derived from the Statistical Abstract of the 

United States, 1986. The state poverty rate is for 1979. The value of mineral production 

is for 1983 or the latest year available. This variable is normalized to represent astate's 

share of mineral income divided by its share of population. A similar normalization 

procedure is carried out for travel expenditures. 

Normalized mineral income was positively and significantly related to high levels of disagreement among 

the capacity measures as was normalized travel expenditure. Both of these variables reflect the ability of 

states to export taxes, which accounts for much of the 

between-measures variation in capacity scores. Not 

only were they important in explaining differences between measures in the two broad categories (PCI-GSPTTR vs. RTS-RRS), but they were also significant in explaining variations among measures within the same 

category. The poverty variable was important in explaining variations between PC1 and both RTS and 

RRS, with poor states having less variation. This confirms the observation that low capacity states seem to 

have less variability among capacity measures than do 

higher income states. However, poverty was not significant in explaining variation among measures aside 

from PC1 and RTSIRRS. 

The most important new information derived from 

this analysis is the importance of population density. 

States with high population density have significantly 

greater variation among the measures of capacity than 

do less densely populated states. Population density 

seems to be positively related to ability-to-pay measures of fiscal capacity (PCI-GSP-TTR) and negatively 

related to the revenue potential measures (RTSIRRS). 

High density states are likely to have less tax capacity 

per person from nonhuman resources like land, including minerals, and possibly a lower ability to export 

taxes, although the reason for this is not apparent. 
Table 8 

Regression Coefficients for Ratios of Capacity Measures 

Dependent 

Variable 

RTSIPI 

RRSIPI 

GSPIPI 

TT WPI 

RRSIRTS 

GSPIRTS 

TTWRTS 

RRSJGSP 

TTWGSP 

TTWRRS 

Ex~lanatow Variables 

Population Mineral Travel 

Income 

.037044 

(17.26) 

.060443 

(25.41) 

.017623 

(7.73) 

.012032 

(6.85) 

.013096 

(10.02) 

-.00991 

(-3.33) 

-.01350 

(-4.95) 

.032032 

(10.16) 

-.00444 

(-3.76) 

-.02029 

(-7.35) 

Note: "t" values in parenthesis; see Table 7. 

Sources: See Table 7. 

Expenditure 

.0639330 

(7.16) 

.0524403 

(5.30) 

-.013076 

(-1.38) 

-.015205 

(-2.08) 

-.009838 

(-1.81) 

-.058516 

(-4.72) 

-.060674 

(-5.34) 

.0729290 

(5.56) 

-.001937 

(-.39) 

-.052658 

(-4.58) 

Constant 

91.75493 

90.48900 

96.76433 

98.72549 

99.62333 

102.9061 

104.7576 

93.34855 

101.9716 

104.7342 

The regression anaIysis explaining the ratio of one 

measure to another (Table 8) yields very similar results 

to those already discussed. A ratio of one means that 

two measures are the same, while ratios above or below 

one indicate differences between pairs of capacity 

measures. It should be noted that the signs of the coefficients change depending upon which measure is in the 

numerator and denominator. In this analysis, the poverty level was not important in explaining variations, so 

it was not included in the reported results. 

It is instructive to analyze in more detail the first 

equation reported in Table 8 explaining the RTSIPCI 

ratio. The ratio falls as population density increases, 

suggestingthat RTS responds less to changes in density 

than does PCI. Both increases in relative mineral income and in travel expenditure increase the ratio because they have more impact on RTS (as a measure of 

tax revenue potential) than they do on PC1 (a measure 

of ability to pay). The other results can be interpreted 

similarly. 

Finally, it is shown in Table 9 that a fairly precise 

relationship exists between PC1 and the other capacity 

measures. The other four measures (RTS, RRS, GSP, 

and TTR) are estimated using PCI, density, travel expenditure and mineral income as explanatory variables. The results suggest that if PC1 is known for a 

state, the other measures of capacity can be estimated 

with a considerable degree of precision (given that information is known about the other explanatory variables). From 92% to 96% of the variation of these measures is explained by PC1 and the three other explanatory variables. A more refined relationship of this type 

might allow analysts to make fairly accurate preliminary estimates of variables, such as RTS and RRS, up to 

a year before they are currently available, since PC1 is 

available a year in advance of the more detailed data 

necessary for the other measures. 

CONCLUSION 

The 1985 measures of fiscal capacity reflect regional differences in state economic performance. The 

Southeast contains states with the lowest fiscal capacity, while New England, the Mideast, the Far West, and 

energy states have above average fiscal capacity. States 

in economic decline generally display increased tax ef- 
Table 9 

Regression Coefficients for Estimates of Capacity Measures 

Ex~lanatorv Variables 

Dependent Population Mineral Travel PC1 

Variable Density Income Expenditure (Constant) 

RTS -.00355 .041978 .067998 1.045440 

(-2.97) (20.54) (8.17) (14.63) 

RRS -.00428 .069601 .052090 1.31247 

(-2.01) (19.13) (3.52) (10.31) 

GSP .018739 .021464 -.00792 .939681 

(11.66) (7.82) (-.71) (9.78) 

TTR .018207 .014541 -.01047 .943111 

(15.13) (7.07) (-1.25) (13.11) 

Note: t values in parenthesis; see Table 7. 

Sources: See Table 7. 

fort, while states experiencing growth have reduced tax 

effort. The tax effort in several states with weakened 

economies was further heightened by legislated tax increases in 1982 and 1983. 

The statistical analysis of the alternative fiscal capacity measures provides evidence on the close linkages 

among the ability-to-pay measures of fiscal capacity: 

Per Capita Income, Gross State Product, and Total 

Taxable Resources. Similarly, the two measures of governments' revenue-collecting potential-the Representative Tax and Representative Revenue indicators-are 

also closely associated with each other. The three factors shown to be associated with disagreement in the 

various measures' scores for a particular state are 

population density, poverty level (in some instances), 

mineral income and travel expenditures. 

Very likely, the RRS and the RTS capacity scores 

for a state could be accurately predicted using these 

three factors and per capita income, which would make 

these important data available in a more timely fashion. The RTS and RRS scores now require the collection 

and organization of a substantial amount of data, which 

delays their availability. 

We believe that the RTS and RRS will continue to 

be of major importance in the measurement and analysis of state-local fiscal capacity, particularly with speedier preparation. As has been mentioned, the Representative Tax System emphasizes taxes, while the more inclusive Representative Revenue System incorporates 

nontax revenue sources. The RTS and RRS remain 

valuable aids to state and local officials in making revenue policy choices because of the disaggregated, basespecific data they uniquely provide. At the federal level 

also, the RTSIRRS have contributed to the debate on 

improving the measurement of fiscal capacity. 

ACIR's development and refinement of the RTS 

over more than 20 years, along with criticisms of both 

the per capita income and the RTS measures, have 

changed the terms of debate. No longer is simple PC1 

the only approach to measuring fiscal capacity. Instead, 

the possibilities include the RTS, the RRS, more sophisticated income measures that explicitly adjust for 

tax exporting, and measures disaggregating personal 

income, such as the index of total taxable resources discussed in the appendix. 

Although each approach has its pluses and minuses-since each derives from a different conception 

of fiscal capacity-RTSIRRS possess several advantages, especially as indicators of governments' revenuecollecting potential. For one, implementation of an export-adjusted income measure (EM) suffers from the 

extremely difficult problem of explicitly measuring and 

correcting for tax exportation. This is a reason why the 

EAI figures for 1981 have not been updated. For another, RTS and RRS have displayed adaptability in 

their ability to accommodate a number of criticisms 

and concerns, as explained in previous reports in this 

ACIR series. As measures of fiscal capacity, the RTSI 

RRS stake out the middle ground between a severely 

limited measure-per capita personal income-and 

highly sophisticated, more theoretically elegant models 

that are dificult both to make operational and to explain to policymakers. 

NOTES state to the government of another state. For example, if a Michigan resident vacations in Hawaii, Michigan's fiscal capacity is re- 'The "Acknowledgments & Related Reports" page cites these re- duced to the extent that Hawaii is able to tax the consumption 

ports. goods or services that would otherwise have been purchased in 

2Conversely, the RTS and RRS also account for at least some types Michigan. However, the issue of tax importation has not received 

of tax importation, or the payment of taxes by the residents of one as much attention as that of tax exportation, probably because it 
is even more difficult to measure and because its effects are more ble for much of the increase in Alaska's estimated tax capacity, 

evenly distributed among the states. compared to 1984. 

3For 1985, a modified calculation of severance tax bases is responsi- 4See Appendir A, derived from ACIR (M-150), September 1986. 
Section 2 

Fiscal Capacity Charts: 

State by State 

This section contains graphs that present the RTS 

and RRS data on a state-by-state basis. The graphs 

show the fiscal capacity figures both over time and by 

selected revenue bases for 1985. The graphs make it 

easy to visualize a state's fiscal choices and also facilitate interstate comparisons. 

The top graph on each page records the RTS tax capacity and tax effort indices-all tax bases-for each 

state for selected years from 1975 to 1985. These 

graphs show trends in each state's capacity and effort 

and illustrate the relative positions of the capacity and 

effort indices during the 1975-85 period. 

Whereas the top graph on each page shows the RTS 

data over time, the bottom graph presents detailed 

1985 data for eight selected revenue bases. (The first 

seven bases are included in the RTS; the eighth appears 

only in the RRS.) Estimated state fiscal capacity per 

capita, actual state revenue collections per capita, and 

the U.S. average fiscal capacity per capita are shown for 

each of the following bases: 

general sales tax, 

total selective sales taxes, 

total license taxes, 

personal income tax, 

corporate net income tax, 

total property taxes, 

total mineral revenues, and 

user charges. 

("Mineral revenues" are the sum of severance tax proceeds, rents and royalties, and grants received under 

the Federal Mineral Leasing Act. The first of these 

bases is included in the RTS.) 

The bottom graph shows directly the degree to 

which a state utilizes a particular tax or other revenue 

source relative to other states. If the first bar (capacity) 

exceeds the second bar (revenue) for a particular tax, 

then the state is raising less revenue from that source 

than the "average state" would raise given the same 

base. Conversely, if the revenue bar exceeds the capacity bar, the state is taxing that base more heavily than 

average. 

The lower graphs can also be interpreted to show 

how a state's mix of revenue sources compares to that 

of other states. For example, if a state's revenue exceeds its capacity for the general sales tax and income 

tax but falls below its capacity for property taxation, 

then that state has a tax mix that emphasizes sales and 

income taxation but deemphasizes the property tax. 

The extent to which actual revenue exceeds capacity (or 

vice versa) provides a measure of the burden a state 

places on one revenue base in relation to another base 

and in relation to other states. 
I Alabama 

1985 RTS Tax Capacity = 75 1985 RTS Tax Effort = 87 

Total Tax Capacity and Effort, 1975-85 

140 - 

- 

130 

- 

120 

- 

Index 11° 

Number - 

(US. = 100) 

- 

I 

70 

Tax Capacit] - 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

D~ ax Capacity 

720 

I Tax Revenue 1 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Alaska 

1985 RTS Tax Capacity = 259 1985 RTS Tax Effort = 128 

Index 

Number 

(U.S. = 100) 

Dollars 

Per Capita 

Total Tax Capacity and Effort, 1975-85 

330 

- 

- 

- 

- 

- 

180 

- 

- 

60 1 I I I I I - 

1975 1977 1979 1981 1983 198! 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 4,581 

I Sales Sales Income Net Income Revenues Charges 
Arizona 

1985 RTS Tax Capacity = 99 1985 RTS Tax Effort = 96 

Number 

(US = 100) loo 

Total Tax Capacity and Effort, 1975-85 

Dollars 

Per Capita 

Tax Capacity 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

720 

Tax Revenue 
Arkansas 

1985 RTS Tax Capacity = 74 1985 RTS Tax Effort = 91 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - 

(U.S. = 100) 100 

- Tax Effort 

90 

- 

80 A 

I A 

I 

70 

A Tax Capacity 

60 I I 1 I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

Tax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
California 

1985 RTS Tax Capacity = 120 1985 RTS Tax Effort = 94 

Total Tax Capacity and Effort, 1975-85 

140~ 

Index 110-12~+d 

Number 

(U.S. = 100) 100 

Dollars 

Per Capita 

b Tax Capacity I 

Tax Effort 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

 ax Capacity 

720 

Tax Revenue 

640 - U.S. Average Capacity . . .+< .. .: _v .(. 

560 - .. . " ,.' 

.. . .. . .. ... . 

Sales Sales Income Net Income Revenues Charges 
Delaware 

1985 RTS Tax Capacity = 123 1985 RTS Tax Effort = 80 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

Selected Tax Bases 

140 

~ - 

130 

- 

I 

120 

- 

Index 11° 

720 

Tax Revenue 

Dollars 

Per Capita 

i~ , 

Sales Sales Income Net Income Revenues Charges 

!I 

Number \r y'aciv!-/fl 

- 

(U.S. = 100) 

90 

- 

i 

80 

- 

70 

- 

60 

1975 1977 1979 1981 1983 1985 

I I I I I 

I Connecticut I 1985 RTS Tax Capacity = 127 1985 RTS Tax Effort = 99 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

Selected Tax Bases 

800 

140 

- 

130 

- 

120 

- 

Index 

Number - (U.S. = 100) 100 

- 

90 

- 

80 

- 

70 

- 

60 

1975 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

1977 1979 1981 1983 1985 

llOqCk 

I 

Sales Sales 

. - 

Income Net Income 

I Tax Capacity 

I 

Revenues Charges 

I I I I 
Washington, DC 

1985 RTS Tax Capacity = 123 1985 RTS Tax Effort = 138 

Total Tax Capacity and Effort, 1975-85 

150 

- t A 

7 4 

140 Tax Effort 

130 

- 

Index 

120 

- 

- 

Number 110 

(U.S. = 100) - b Tax Capacity 

100 

- 

4 

90 

- 

80 

- 

70 

- 

60 I I I 1 I I 

1975 1977 1979 1981 19'83 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

ax Capacity 

Sales Sales Income Net Income Revenues Charges 
Florida 

1985 RTS Tax Capacity = 103 1985 RTS Tax Effort = 76 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - 

(U.S. = 100) 

- 

#I-- I, - I - cF#-

90 

- 

80 

v 70 

Tax Effort - 

60 I I I I I 

1 &5 1977 19+9 19'81 19'83 1&5 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 r I 

ax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 

- General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
I Georgia 

1985 RTS Tax Capacity = 90 1985 RTS Tax Effort = 90 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) Tax Effort 

100 

- v 

90 2-1 Y 

I - 

80 

1 - I Tax Capacity 

70 

- 

Dollars 

Per Capita 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

720 

Tax Revenue 

Sales Sales Income Net Income Revenues Charges 
Hawaii 

1985 .RTS Tax Capacity = 1 17 1985 RTS Tax Effort = 99 

Total Tax Capacity and Effort, 1975-85 

40 

- Tax Effort 

30 

- 

20 

Index llO! 

A I 

Number - (U.S. = 100) 

I Tax Capacity 1, 

- 

90 

- 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

I Tax Revenue I 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Idaho 

1985 RTS Tax Capacity = 78 1985 RTS Tax Effort = 90 

Total Tax Capacity and Effort, 1975-85 

Index 

Number - 

Tax Effort 

1, I 

- 

80 

I - Tax Capacity 

70 

- 

60 I I I 1 I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

Tax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

Sales Sales Income Net Income Revenues Charges 
Illinois 

1 1985 RTS Tax Capacity = 96 1985 RTS Tax Effort = 106 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- a I Tax Capacity 

Index 11° 

'-' 

I Number 

(U.S. = 100) 

4- 1 - - I - 

90 Tax Effort 

- 

80 

- 

70 

- 

fin . 4 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 D~ ax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Indiana 

1985 RTS Tax Capacity = 87 1985 RTS Tax Effort = 96 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

Selected Tax Bases 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) Tax Capacity 100 - I 

800 

T ax Capacity 

/ Tax Revenue 

4 

Dollars 480 

Per Capita I 

b 

h 

b - I 

" 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 

I 

b 

1975 1977 1979 1981 1983 1985 

80 

- 

70 

- 

60 I 

Tax Effort 

I I I 
Iowa 

1985 RTS Tax Capacity = 84 1985 RTS Tax Effort = 11 2 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- Tax Capacity 

Index 11° -I 

Number 

(U.S. = 100) 100 

- 

It9O-*bd h 

- Tax Effort 8 

80 

- 

70 

- 

60 I I I 1 I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

10 .. .. Tax Capaclty 

720 

Tax Revenue 

Dollars. 

Per Capita 
I Kansas 

1985 RTS Tax Capacity = 99 1985 RTS Tax Effort = 96 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- Tax Capacity 

Index 11° - I 

Number - (U.S. = 100) 

- 

90 A 

* 7r v 

Tax Effort 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 a T ax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Kentuckv 

1985 RTS Tax Capacity = 78 1985 RTS Tax Effort = 87 

Index 

Number 

(U.S. = 100) 

Total Tax Capacity and Effort, 1975-85 

Dollars 480 

Per Cabita 

140 

- 

130 

- 

120 

- 

110 

- 

100 

- 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

.~ ~~ 

General Selective Licenses Personal Corporate Property Mineral User 

Tax Effort 

800 

720 

640 

560 

I Sales Sales Income Net Income Revenues Charges 

D~ ax Capacity 

- 

Tax Revenue 

. 

U.S. Average Capacity 

90 

m 

- 

80 7- 

- Tax Capacity 

1975 1977 1979 1981 1983 1985 

70 

- 

60 I I I 1 I 
Louisiana 

1985 RTS Tax Capacity = 97 1985 RTS Tax Effort = 93 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) 

- 

90 / / 

- 

60 I I I 1 I 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

720 

640 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

T ax Capacity 

Tax Revenue 

U.S. Average Capacity 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Maine 

1985 RTS Tax Capacity = 89 1985 RTS Tax Effort = 104 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- Tax Effort 

Selected Tax Bases 

800 

Dollars 

Per Capita 

720 

640 

560 

General Selective Ucenses Personal Corporate Property Mineral User 

Tax Capacity 

Tax Revenue 

U.S. Average Capacity 

I Sales Sales Income Net Income Revenues Charges 

Index 'lo-- 

Number - 

(U.S. = 100) 

A\ 

- 

90 

-It 

- 

11 

Yr 

80-~~----lr--c 

70 

- 

60 

1 

4, 

1975 1977 1979 1981 1983 1985 

I 

Tax Capacity 

I I I I 
1 Maryland 

1985 RTS Tax Capacity = 104 1985 RTS Tax Effort = 101 

Total Tax Capacity and Effort, 1975-85 

1 40 

- 

130 

- 

120 

- Tax Effort 

Index 11° b A 

v 

Number A b 

(U.S. = 100) ' I 

I - - 'T 

90 Tax Capacity 

- 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

I985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

Sales Sales Income Net Income Revenues Charges 
Massachusetts 

1985 RTS Tax Capacity = 1 13 1985 RTS Tax Effort = 106 

Total Tax Capacity and Effort, 1975-85 

150 

- /\* Tax Effort 140 

- 

130 ,), 

- 

120 

Index - 

Number 

(U.S. = 100) - 

100 J/ . a/ 

- 

90 

- Tax Capacity 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 mT 0. ax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

I Sales Sales Income Net Income Revenues Charges 
Michigan 

1985 RTS Tax Capacity = 94 1985 RTS Tax Effort = 120 

Total Tax Capacity and Effort, 1975-85 

1401------ 

Index 

Number 

(U.S. = 100) 

f-- 

Dollars 

Per Capita 

I Tax Capacity 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

I Tax Revenue I 

Sales Sales Income Net Income Revenues Charges 
Minnesota 

1985 RTS Tax Capacity = 101 1985 RTS Tax Effort = 119 

Total Tax Capacity and Effort, 1975-85 

140 

130 

- 

120 

Number - 1 I1 

- Tax Capacity -7- 

90 

- 

80 

- 

70 

- 

60 1 I 1 I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

Dollars 

Per Capita 

I Sales Sales Income Net Income Revenues Charges 
Mississippi 

1985 RTS Tax Capacity = 69 1985 RTS Tax Effort = 93 

Total Tax Capacity and Effort, 1975-85 

130 

120 

Index 11° 

Number 

(U.S. = 100) 

90 

80 

Tax Capacity 

60 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

Tax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

Dollars 480 

Per Caaita 

Sales Sales Income Net Income Revenues Charges 
Missouri 

1985 RTS Tax Capacity = 90 1985 RTS Tax Effort = 84 

Total Tax Capacity and Effort, 1975-85 

140 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) Tax Capacity 

I & I 

90 -m 

- 

4 1, 

80 - t- 

- Tax Effort 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 uT ax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

Dollars 480 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
I Montana 

1985 RTS Tax Capacity = 90 1985 RTS Tax Effort = 107 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

Tax Capacity - I 

Index 

I 

- Tax Effort 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Dollars 

Per Capita 

Selected Tax Bases 

Sales Sales Income Net Income Revenues Charges 
Nebraska 

1985 RTS Tax Capacity = 94 1985 RTS Tax Effort = 93 

Total Tax Capacity and Effort, 1975-85 

1985 Tax Capacity and Tax Revenue 

140 

- 

130 

- 

1 20 

- 

Index 

Selected Tax Bases 

800 

 ax Capacity 

Tax Capacity 

I Tax Revenue I 

Number - (U.S. = 100) 

A 

i /I 

Dollars 

Per Capita 

- 

General Selective Llcenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
I Nevada 

1985 RTS Tax Capacity = 146 1985 RTS Tax Effort = 64 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

897 Selected Tax Bases 

800 .:~,%+ 

..? , .. .. . ,%,. .. Tax Capacity <.. ..; 

160 - 

150 

140 - 

130 

- 

Index 120 

Number - 

(U.S. = 100) 110 

Dollars 

Per Capita 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 

100 - 

90 - 

80 - 

A 

A 

v 

I v 

I I 

IF I I Tax Capacity 
New Hampshire 

1985 RTS Tax Capacity = 1 12 1985 RTS Tax Effort = 65 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index llOppp 

Number - (U.S. = 100) loo . 

- 

90 

- 

80 

.r 

70 

- Tax Effort 

60 I 1 I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

Sales Sales Income Net Income Revenues Charges 
New Jersey 

1985 RTS Tax Capacity = 1 17 1985 RTS Tax Effort = 105 

I985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

140 

Selected Tax Bases 

- 

130 

- 

120 

- A 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 

I 

Index 11° p 

Number 

(U.S. = 100) 

1975 1977 1979 1981 1983 1985 

T 

- 

90 

- 

80 

- 

70 

- 

60 I I I 

i Tax Capacity 

I I 
New Mexico 

1985 RTS Tax Capacity = 99 1985 RTS Tax Effort = 86 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

Tax Capacity - 

Index 11° 

Number - (U.S. = 100) loo 

- 

90 

I 

80 

- 

70 

60 I I I 1 I 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 nT ax Capacity 

I Tax Revenue 

Dollars 

Per Capita 

" 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
I New York 

1985 RTS Tax Capacity = 101 1985 RTS Tax Effort = 156 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

180 

- t 

Selected Tax Bases 

800 

Dollars 

Per Capita 

-1 

160- 

Sales Sales Income Net Income Revenues Charges 

- 

140 

Index 

Number - 

(U.S. = 100) 

- 

100 ----- 

- 

80 

- 

60 

t - I 

I I I 

I 

Tax Capacity 

I I 
North Carolina 

1985 RTS Tax Capacity = 86 1985 RTS Tax Effort = 93 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 0°) 100 

Tax Effort 

- 

90 r 

Ir t I 

3 

80-1'- 

- Tax Capacity 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 uT ax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 . 

I Sales Sales Income Net Income Revenues Charges 
I North Dakota 

1985 RTS Tax Capacity = 102 1985 RTS Tax Effort = 92 

1985 Tax Capacity and Tax Revenue 

Total Tax Capacity and Effort, 1975-85 

Selected Tax Bases 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) ,, 

- 

90 

- 

80 

- 

70 

- 

800 

/-JT ax Capacity 

- 1 

'+ 

General Selective Licenses Personal Corporate Property Mineral User 

720 

Sales Sales Income Net Income Revenues Charges 

Tax Capacity 

I 

Tax Revenue 

T 

4b 

I Oklahoma 

1985 RTS Tax Capacity = 105 1985 RTS Tax Effort = 84 

Total Tax Capacity and Effort, 1975-85 

Index 

Number 

(U.S. = 100) 

140 

- 

130 

- 

120 

- 

Tax Capacity 110 / 

- 

100 .I 

- 

90 

- 

80 

- 

4b 4 

70 7. 

Tax Effort 

60 I I I I I 

1975 1977 19.79 1981 1983 198 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

ax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

Sales Sales Income Net Income Revenues Charges 
Oregon 

1985 RTS Tax Capacity = 95 1985 RTS Tax Effort = 101 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- Tax Capacity 

Index 11° 

Number 

(U.S. = 100) 100-11 

A 

90 C 

- Tax Effort 

80 

- 

70 

- 

60 . I 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

 ax Capacity 

720 

Tax Revenue 

Dollars 

Per Capita 
I Pennsylvania I 1985 RTS Tax Capacity = 89 1985 RTS Tax Effort = 102 

Index 

Number 

(U.S. = 100) 

Total Tax Capacity and Effort, 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

720 

Tax Revenue 

Sales Sales Income Net Income Revenues Charges 
Rhode Island 

1985 RTS Tax Capacity = 88 1985 RTS Tax Effort = 118 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 'lo" 

Number - (U.S. = 100) loo 

1985 Tax Capacity and Tax Revenue 

Dollars 

Per Capita 

Selected Tax Bases 

I Tax Revenue I 

U.S. Average Capacity m 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
South Carolina 

1985 RTS Tax Capacity = 77 1985 RTS Tax Effort = 95 

Total Tax Capacity and Effort, 1975-85 

1 40 

- 

130 

- 

120 

- 

index 110 

Number - (U.S. = 100) 

A 

- A 

7. 7 v 4 b 

90 

4 

80 

It 

70 

- 

60 I I I I I I 

800 

720 

640 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

Tax Revenue I 

U.S. Average Capacity I 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
South Dakota 

1985 RTS Tax Capacity = 82 1985 RTS Tax Effort = 87 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

Index 11° 

Number - (U.S. = 100) 

90 

1, 

80 

I 

Tax Effort 

70 

- 

60 . 

800 

720 

640 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

Tax Revenue I 

U.S. Average Capacity 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
1 Tennessee 

1985 RTS Tax Capacity = 83 1985 RTS Tax Effort = 82 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - 

(U.S. = 100) 

- 

90 

Tax Effort 

80 

- ax Capacity 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

 ax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 . 

Dollars 

Per Capita 

Sales Sales Income Net Income Revenues Charges 
Texas 

1985 RTS Tax Capacity = 11 1 1985 RTS Tax Effort = 76 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 Tax Capacity 

/ 

- 

Index 11° 

'' w 

Number - (U.S. = 0°) 100 

- 

90 

- 

80 

- Tax Effort 

70 

4 b 4 

- A A 

7 7. v 

60 I I I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

720 

Tax Revenue 

Dollars 

Per Capita 

- 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Utah 

1985 RTS Tax Capacity = 81 1985 RTS Tax Effort = 109 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - Tax Effort 

(U.S. = 100) 

CI- A 

v 

90 , I - I - - 

Tax Capacity - 

80 I 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 I! 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 nT ax Capacity 

I Tax Revenue 

640 - urnsm Average Capacity 

Dollars 

Per Capita 

Sales Sales Income Net Income Revenues Charges 
I Vermont 

1985 RTS Tax Capacity = 97 1985 RTS Tax Effort = 93 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

Tax Effort 

Index 11° , Number - 

(U.S. = 100) 

- I 

90 

- I I 

80 

- Tax Capacity 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

720 

Tax Revenue 

Dollars 

Per Capita 

General Selective Ucenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Virainia 

1985 RTS Tax Capacity = 98 1985 RTS Tax Effort = 86 

Total Tax Capacity and Effort, 1975-85 

- 

Index 110 

Number - 

(U.S. = 100) 

Tax Capacity - - 

m 1' - * 90 - r T 

Tax Effort 

80 

- 

70 

- 

60 I I I I I 

I985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

p-~ T ax Capacity 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

Sales Sales Income Net Income Revenues Charges 
Washington 

1985 RTS Tax Capacity = 101 1985 RTS Tax Effort = 95 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - (U.S. = 100) 100Ah 

m \ 

- 

- h 

90 

- Tax Effort 

80 

- 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

800 

720 

640 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

QT ax Capacity 

General Selective Ucenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
West Virginia 

1985 RTS Tax Capacity = 77 1985 RTS Tax Effort = 103 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

- 

Index 11° 

Number - 

(U.S. = 100) 

90 

, 

80 

- Tax Effort 

70 

- 

60 I I I I I 

1975 1977 1979 1981 1983 1985 

1985 Tax Capacity and Tax Revenue 

Selected Tax Bases 

10 .... .:. Tax Capacity I 

720 

Tax Revenue 

640 

U.S. Average Capacity 

560 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Wisconsin 

1985 RTS Tax Capacity = 89 I985 RTS Tax Effort = 128 

Total Tax Capacity and Effort, 1975-85 

140 

- 

130 

- 

120 

+ b 

Index 11° 

Number - 

(US. = 100) 

v 

- 

I 

- 

90 a 

- 

80 

- 

70 

- 

60 I I I I I 

1985 Tax Capacity and Tax Revenue 

Dollars 

Per Capita 

Selected Tax Bases 

I Tax Revenue I 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 
Wyoming 

1985 RTS Tax Capacity = 169 1985 RTS Tax Effort = 108 

Total Tax Capacity and Effort, 1975-85 

Index 

Number 

(U.S. = 100) 

1985 Tax Capacity and Tax Revenue 

220 

- 

200 

- 

- 

160 

- 

140 

- 

120 

- 

100 

- 

80 

Selected Tax Bases 1,167 800 

720 

640 

560 

Dollars 480 

Per Capita 

400 

320 

240 

160 

80 

0 

General Selective Licenses Personal Corporate Property Mineral User 

Sales Sales Income Net Income Revenues Charges 

180--- 

Ab 

+ 

1975 1977 1979 1981 1983 1985 

4 Tax Capacity 

+ Tax Effort 

I 60 

ik 

I I I I 
Section 3 

Fiscal Capacity Tables: 

Revenue Base by Revenue Base 

In this section, the 1985 Representative Tax System (RTS) and Representative Revenue System (RRS) 

tables are organized revenue base by revenue base. For 

each tax or nontax revenue base, states are compared in 

terms of: 

tax base, 

capacity per capita, 

tax capacity index, 

tax capacity, 

tax revenue, 

revenue per capita, and 

tax effort index, 

The tax base (revenue base) is an estimate of the resources available for taxation under a particular tax. A 

standard definition of tax or other revenue bases was 

used across all states. 

Capacity per capita is the population divided into 

the revenue that could be collected (i.e., capacity) from 

the tax base when the representative (i.e., average) tax 

rate is applied. 

The tax capacity index compares each state's capacity per capita to the average for all states. An index of 

100 is the average. 

Tax capacity is the yield for each state when the 

representative tax rate is applied to the standardized 

measure of tax base. 

Tax revenue is the amount each state actually collected for that type of tax. 

Revenueper capita is tax revenue divided by population. The tax effort index is constructed first by dividing actual revenues by tax capacity in each state, and 

then multiplying by 100. An index above 100 means 

that the state, compared to all others, is above average 

in the extent to which it exploits the particular tax base. 

These tables show, among other things, which 

states have the most (or least) capacity to use any particular tax. For example, those states with oil and gas 

production and those without are evident. One can also 

see, for example, which states have the most per capita 

income tax or sales tax capacity. The rankings particularly facilitate interstate comparisons. 

The tax effort data showwhich states lean the most 

on any particular tax. Common practice is to compare 

statutory state tax rates (sales tax rates, for example), 

rather than effective rates. However, such comparisons 

may mislead because states have chosen different legal 

definitions of tax base-sometimes creating a broad 

base that allows for low statutory rates, but sometimes 

allowing many exemptions that necessitate the use of a 

higher rate. Because the tax effort data reported here 

are based on standardized definitions of tax base, no 

such distortion exists. The RTSIRRS representative 

rate listed for individual tax bases is nationwide tax 

revenue divided by standard tax base. 

Tables 3-1 and 3-2 summarize RTS and RRS, respectively. Next, Tables 3-3 through3-32 provide information (including subtotal tables) for each of the 26 

RTS tax bases. Tables 3-33 through 3-36 detail the four 

nontax RRS revenue bases that, added to the 26 RTS 

bases, constitute the Representative Revenue System. 
Table 3- 1 

The Representative Tax System - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

$1,056.85 

3,648.29 

1,392.75 

1,038.81 

1,691.83 

1,662.90 

1,782.92 

1,733.07 

1,725.23 

1,452.46 

1,271.68 

1,653.35 

1,099.75 

1,355.91 

1,224.26 

1,185.84 

1,388.57 

1,101.28 

1,361.67 

1,256.31 

1,470.72 

1,587.38 

1,325.45 

1,426.60 

972.43 

1,273.89 

1,272.56 

1,317.64 

2,054.18 

1,577.73 

1,646.30 

1,392.14 

1,420.01 

1,212.80 

1,429.48 

1,277.34 

1,478.27 

1,331.73 

1,258.02 

1,236.31 

1,081.68 

1,156.96 

1,172.71 

1,562.83 

1,136.45 

1,368.08 

1,376.19 

1,420.82 

1,085.74 

1,246.40 

2,380.33 

$1,408.06 

Tax 

Capacity 

IndexIRank 

75.1 / 49 

259.1 / 1 

98.9 / 21 

73.8 / 50 

120.2 / 7 

118.1 1 8 

126.6 / 4 

123.1 / 5 

122.5 1 6 

103.2 / 16 

90.3 / 34 

117.4 / 9 

78.1 / 46 

96.3 1 27 

86.9 / 39 

84.2 / 41 

98.6 / 23 

78.2 / 45 

96.7 1 26 

89.2 / 36 

104.5 / 15 

112.7 / 11 

94.1 / 29 

101.3 1 18 

69.1 / 51 

90.5 / 32 

90.4 / 33 

93.6 / 30 

145.9 / 3 

112.0 / 12 

116.9 / 10 

98.9 / 22 

100.8 / 20 

86.1 / 40 

101.5 / 17 

90.7 / 31 

105.0 / 14 

94.6 / 28 

89.3 / 35 

87.8 / 38 

76.8 1 48 

82.2 / 43 

83.3 / 42 

111.0 1 13 

80.7 / 44 

97.2 / 25 

97.7 1 24 

100.9 / 19 

77.1 / 47 

88.5 I 37 

169.1 / 2 

100.0 

Tax 

Capacity 

$4,250 

1,901 

4,439 

2,451 

44,605 

5,373 

5,659 

1,078 

1,080 

16,509 

7,600 

1,743 

1,105 

15,640 

6,732 

3,420 

3,402 

4,103 

6,102 

1,462 

6,459 

9,242 

12,046 

5,982 

2,541 

6,406 

1,051 

2,116 

1,923 

1,575 

12,449 

2,019 

25,252 

7,586 

979 

13,724 

4,880 

3,578 

14,911 

1,197 

3,620 

819 

5,584 

25,583 

1,869 

732 

7,853 

6,264 

2,102 

5,952 

1,212 

$336,159 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for particular taxes. 

Tax 

Revenue 

$3,713 

2,440 

4,281 

2,238 

41,706 

4,544 

5,598 

858 

1,487 

12,535 

6,835 

1,724 

998 

16,640 

6,434 

3,825 

3,264 

3,552 

5,650 

1,521 

6,516 

9,821 

14,504 

7,113 

2,362 

5,372 

1,120 

1,966 

1,226 

1,018 

13,024 

1,739 

39,372 

7,036 

901 

14,075 

4,119 

3,629 

15,276 

1,413 

3,445 

711 

4,573 

19,479 

2,036 

679 

6,791 

5,946 

2,156 

7,591 

1,308 

$336,159 

Revenue 

Per 

Capita 

$923.52 

4,682.65 

1,343.32 

948.66 

1,581.89 

1,406.38 

1,763.61 

1,379.24 

2,375.95 

1,102.88 

1,143.73 

1,635.39 

992.78 

1,442.56 

1,170.10 

1,326.20 

1,332.37 

953.34 

1,260.82 

1,306.47 

1,483.50 

1,686.96 

1,595.91 

1,696.50 

904.08 

1,068.16 

1,356.29 

1,224.14 

1,309.95 

1,020.42 

1,722.24 

1,199.46 

2,214.02 

1,124.87 

1,314.77 

1,310.02 

1,247.88 

1,350.47 

1,288.79 

1,459.26 

1,029.19 

1,004.38 

960.22 

1,189.91 

1,237.61 

1,270.08 

1,190.10 

1,348.62 

1,113.57 

1,589.69 

2,569.71 

$1,408.06 

Tax 

Effort 

IndexIRank 

87.4 / 38 

128.4 / 3 

96.5 / 23 

91.3 / 35 

93.5 / 28 

84.6 / 43 

98.9 / 21 

79.6 / 47 

137.7 / 2 

75.9 / 49 

89.9 1 37 

98.9 / 22 

90.3 / 36 

106.4 / 12 

95.6 / 25 

111.8 / 8 

96.0 / 24 

86.6 1 40 

92.6 / 33 

104.0 / 15 

100.9 / 20 

106.3 / 13 

120.4 / 5 

118.9 / 6 

93.0 / 29 

83.9 / 45 

106.6 / 11 

92.9 / 30 

63.8 / 51 

64.7 / 50 

104.6 / 14 

86.2 / 42 

155.9 / 1 

92.7 / 32 

92.0 1 34 

102.6 / 17 

84.4 / 44 

101.4 / 19 

102.4 / 18 

118.0 / 7 

95.1 / 26 

86.8 / 39 

81.9 1 46 

76.1 1 48 

108.9 1 9 

92.8 / 31 

86.5 1 41 

94.9 / 27 

102.6 / 16 

127.5 / 4 

108.0 / 10 

100.0 

Source: ACIR staff estimates. 
Table 3-2 

The Representative Revenue System - 1985 

State 

Capacity 

Tax Per 

Base* Capita 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississi~- ' 

Misr 

I\ 

PI, 

Ne 

New 

New 

New 1\, 

New Yo. 

North Cir ' 

North Dah 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Capacity 

IndexIRank 

75.1 1 49 

382.9 1 1 

96.7 / 26 

73.5 1 50 

119.4 / 6 

115.5 1 9 

126.3 / 4 

117.8 1 7 

123.2 / 5 

101.4 / 17 

89.6 / 35 

112.7 / 11 

78.1 / 45 

97.5 / 25 

86.8 / 39 

84.8 / 41 

98.0 / 24 

77.5 1 46 

98.0 / 23 

87.7 / 38 

105.6 1 15 

112.9 / 10 

94.2 / 28 

100.5 / 20 

67.9 / 51 

90.7 / 32 

89.3 / 36 

93.3 / 29 

136.7 / 3 

110.2 / 12 

117.4 / 8 

07.5 / 14 

3.0 1 16 

9 / 40 

1 1 19 

/ 31 

1 18 

30 

33 

4 

Tax 

Capacity 

$5,417 

3,577 

5,529 

3,110 

56,452 

6,695 

7,189 

1,315 

1,383 

20,671 

9,597 

2,131 

1,407 

20,171 

8,556 

4,388 

4,304 

5,178 

7,879 

1,831 

8,316 

11,783 

15,356 

7,559 

3,183 

8,181 

1,322 

2,686 

2,294 

1,972 

15,918 

2,797 

32,858 

9,523 

1,241 

17,511 

5,987 

4,484 

19,156 

1,556 

4,565 

1,032 

7,011 

31,908 

2,387 

905 

'.064 

396 

28 

7 

Tax 

Revenue 

$5,570 

4,320 

5,241 

2,841 

53,094 

5,916 

6,424 

1,265 

1,722 

17,509 

9,591 

2,079 

1,319 

19,549 

8,363 

4,917 

4,121 

4,658 

7,750 

1,788 

8,263 

11,479 

18,027 

9,207 

3,383 

6,815 

1,390 

2,657 

1,785 

1,310 

15,273 

2,562 

47,349 

8,746 

1,320 

17,550 

5,422 

4,748 

18,905 

1,673 

4,666 

922 

6,212 

25,820 

2,614 

89 1 

9,248 

7,879 

2,791 

9,371 

1,829 

$428,140 

Revenue 

Per 

Capita 

$1,385.14 

8,291.80 

1,644.53 

1,204.50 

2,013.80 

1,830.96 

2,023.80 

2,033.48 

2,750.46 

1,540.44 

1,604.88 

1,972.13 

1,312.69 

1,694.72 

1,520.84 

1,704.87 

1,681.97 

1,250.21 

1,729.45 

1,535.73 

1,881.27 

1,971.72 

1,983.58 

2,195.89 

1,294.62 

1,355.20 

1,682.45 

1,654.69 

1,906.59 

1,312.88 

2,019.65 

1,766.94 

2,662.62 

1,398.31 

1,926.55 

1,633.48 

1,642.40 

1,767.12 

1,594.97 

1,728.51 

1,394.10 

1,302.18 

1,304.39 

1,577.27 

1,588.80 

1,665.51 

1,620.76 

1,786.96 

1,441.62 

1,962.51 

3,592.74 

$1,793.34 

Tax 

Effort 

IndexIRank 

N0TE:AIl per capita amounts are in do11 

*No combined tax base can be reported; s, 

Source: ACIR staff estimates. 
Table 3-3 

General Sales and Gross Receipts Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$14,177 

3,640 

15,092 

9,031 

151,314 

18,551 

18,115 

3,521 

3,440 

65,630 

28,769 

6,707 

3,772 

54,035 

25,920 

12,171 

11,504 

14,376 

18,958 

5,710 

24,053 

35,398 

43,111 

23,161 

8,993 

25,791 

3,750 

7,595 

11,843 

6,296 

42,604 

6,669 

84,925 

27,850 

3,730 

49,696 

15,833 

12,867 

52,827 

4,554 

13,939 

3,241 

22,135 

83,156 

6,409 

3,105 

28,067 

20,062 

7,373 

21,073 

3,044 

$1,187,582 

Capacity 

Per 

Capita 

$249.86 

495.09 

335.58 

271.31 

406.72 

406.89 

404.45 

401.11 

389.38 

409.20 

341.15 

450.93 

266.01 

331.97 

334.04 

299.07 

332.76 

273.42 

299.82 

347.61 

388.10 

430.87 

336.18 

391.45 

243.89 

363.44 

321.77 

335.13 

896.69 

447.08 

399.26 

325.92 

338.43 

315.53 

385.92 

327.79 

339.91 

339.36 

315.84 

333.42 

295.14 

324.44 

329.41 

359.99 

276.09 

411.30 

348.58 

322.47 

269.87 

312.74 

423.87 

$352.52 

Tax 

Capacity 

IndeNRank 

70.9 / 50 

140.4 / 2 

95.2 / 27 

77.0 / 47 

115.4 / 10 

115.4 / 9 

114.7 / 11 

113.8 / 12 

110.5 / 15 

116.1 / 8 

96.8 / 22 

127.9 / 3 

75.5 / 49 

94.2 / 32 

94.8 / 29 

84.8 / 43 

94.4 / 31 

77.6 / 46 

85.0 / 42 

98.6 / 21 

110.1 / 16 

122.2 / 5 

95.4 / 26 

111.0 / 14 

69.2 / 51 

103.1 / 18 

91.3 / 38 

95.1 / 28 

254.4 / 1 

126.8 / 4 

113.3 / 13 

92.5 / 35 

96.0 / 25 

89.5 / 40 

109.5 / 17 

93.0 / 34 

96.4 / 23 

96.3 / 24 

89.6 / 39 

94.6 / 30 

83.7 / 44 

92.0 / 36 

93.4 / 33 

102.1 / 19 

78.3 / 45 

116.7 / 7 

98.9 / 20 

91.5 / 37 

76.6 / 48 

88.7 / 41 

120.2 / 6 

100.0 

Tax 

Capacity 

$1,005 

258 

1,069 

640 

10,723 

1,315 

1,284 

249 

244 

4,651 

2,039 

475 

267 

3,829 

1,837 

863 

815 

1,019 

1,343 

405 

1,705 

2,509 

3,055 

1,641 

637 

1,828 

266 

538 

839 

446 

3,019 

473 

6,018 

1,974 

264 

3,522 

1,122 

912 

3,744 

323 

988 

230 

1,569 

5,893 

454 

220 

1,989 

1,422 

522 

1,493 

216 

$84,160 

Tax 

Revenue 

$1,188 

52 

1,628 

762 

12,151 

1,397 

1,539 

0 

332 

4,672 

1,991 

684 

239 

4,219 

2,113 

758 

668 

820 

2,203 

354 

1,098 

1,438 

2,542 

1,358 

932 

1,864 

0 

397 

463 

0 

2,261 

719 

7,963 

1,599 

187 

3,165 

1,083 

0 

3,019 

274 

1,011 

229 

2,249 

5,157 

676 

88 

1,246 

3,034 

663 

1,454 

219 

$84,160 

Revenue 

Per 

Capita 

$295.57 

99.16 

510.97 

322.97 

460.86 

432.30 

484.73 

0.00 

529.93 

411.09 

333.18 

648.61 

237.36 

365.76 

384.24 

262.75 

272.67 

220.20 

491.65 

304.10 

250.10 

246.99 

279.72 

323.93 

356.86 

370.65 

0.00 

247.35 

494.92 

., 0.00 

298.97 

495.93 

447.81 

255.59 

273.66 

294.61 

328.03 

0.00 

254.73 

283.30 

302.00 

323.10 

472.38 

315.03 

411.22 

164.39 

218.39 

688.11 

342.52 

304.40 

430.36 

$352.52 

Tax 

Effort 

IndeNRank 

118.3 / 14 

20.0 / 47 

152.3 / 3 

119.0 / 13 

113.3 / 16 

106.2 / 18 

119.8 / 12 

0.0 / z 

136.1 / 9 

100.5 / 22 

97.7 / 24 

143.8 / 7 

89.2 / 28 

110.2 / 17 

115.0 / 15 

87.9 / 29 

81.9 / 35 

80.5 / 38 

164.0 / 2 

87.5 / 31 

64.4 / 42 

57.3 / 44 

83.2 / 33 

82.8 / 34 

146.3 / 6 

102.0 / 20 

0.0 / z 

73.8 / 40 

55.2 / 45 

0.0 / z 

74.9 / 39 

152.2 / 4 

132.3 / 10 

81.0 / 36 

70.9 / 41 

89.9 / 27 

96.5 / 26 

0.0 / z 

80.7 / 37 

85.0 / 32 

102.3 / 19 

99.6 / 23 

143.4 / 8 

87.5 / 30 

148.9 / 5 

40.0 / 46 

62.7 / 43 

213.4 / 1 

126.9 / 11 

97.3 / 25 

101.5 / 21 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 7.1%. 

*Tax base is retail sales in millions of dollars. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-4 

Total Selective Sales Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

Tax 

Capacity 

IndeNRank 

98.6 / 29 

110.3 / 5 

100.0 / 23 

96.6 / 37 

105.4 / 11 

97.4 / 33 

107.3 / 8 

123.6 / 3 

103.1 / 15 

105.9 / 10 

104.3 / 12 

75.5 / 51 

88.7 / 48 

99.8 / 24 

101.7 / 18 

96.7 1 36 

103.9 / 13 

101.3 / 19 

106.5 / 9 

95.8 / 38 

95.7 / 40 

99.5 / 26 

102.2 / 16 

94.3 / 42 

91.1 / 44 

97.7 / 31 

98.9 / 28 

101.3 / 20 

142.0 / 1 

117.9 / 4 

107.8 / 7 

100.0 / 22 

95.0 / 41 

98.5 / 30 

101.3 / 21 

95.7 / 39 

103.8 / 14 

96.8 / 35 

89.8 / 46 

96.9 / 34 

97.7 / 32 

99.5 / 25 

101.7 / 17 

108.6 / 6 

79.0 / 50 

98.9 / 27 

91.0 / 45 

89.7 / 47 

84.1 / 49 

91.3 / 43 

126.0 / 2 

100.0 

Tax 

Capacity 

$622 

90 

499 

357 

4,357 

493 

534 

120 

101 

1,886 

977 

125 

140 

1,805 

876 

437 

399 

592 

748 

175 

659 

908 

1,455 

620 

373 

770 

128 

255 

208 

185 

1,278 

227 

2,648 

966 

109 

1,612 

537 

408 

1,669 

147 

513 

110 

759 

2,786 

204 

83 

813 

620 

255 

683 

101 

$37,421 

Tax 

Revenue 

$829 

74 

489 

344 

3,234 

368 

788 

100 

118 

2,496 

828 

211 

128 

2,224 

520 

323 

369 

439 

781 

197 

644 

753 

1,041 

652 

285 

67 1 

138 

234 

418 

146 

1,830 

198 

2,852 

986 

102 

1,748 

472 

298 

1,784 

176 

482 

94 

627 

2,753 

205 

92 

902 

897 

276 

749 

56 

$37,421 

Revenue 

Per 

Capita 

$206.17 

142.83 

153.48 

145.92 

122.67 

113.86 

248.39 

160.12 

188.04 

219.57 

138.50 

199.87 

126.90 

192.79 

94.56 

112.14 

150.80 

117.90 

174.37 

169.09 

146.63 

129.31 

114.59 

155.38 

109.20 

133.35 

167.65 

145.58 

446.26 

145.84 

242.01 

136.85 

160.35 

157.62 

149.11 

162.73 

143.11 

110.99 

150.52 

182.07 

144.14 

132.73 

131.56 

168.16 

124.50 

172.37 

158.06 

203.35 

142.53 

156.84 

110.03 

$156.74 

Tax 

Effort 

IndexIRank 

133.4 / 6 

82.6 / 40 

97.9 / 25 

96.3 / 27 

74.2 / 45 

74.6 / 44 

147.6 1 3 

82.7 / 39 

116.4 / 10 

132.3 / 7 

84.7 / 37 

169.0 / 2 

91.3 / 32 

123.2 / 8 

59.3 1 50 

74.0 / 47 

92.6 1 30 

74.2 / 46 

104.5 / 21 

112.6 / 11 

97.8 1 26 

82.9 / 38 

71.6 / 49 

105.1 / 20 

76.4 1 43 

87.0 / 35 

108.2 / 16 

91.7 / 31 

200.5 / 1 

78.9 1 42 

143.2 / 5 

87.3 / 34 

107.7 / 18 

102.1 / 22 

93.9 / 29 

108.5 / 15 

88.0 / 33 

73.1 / 48 

106.9 / 19 

119.8 / 9 

94.1 / 28 

85.1 / 36 

82.5 / 41 

98.8 / 24 

100.6 / 23 

111.2 / 12 

110.9 / 13 

144.6 / 4 

108.2 / 17 

109.6 / 14 

55.7 1 51 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for particular selective sales taxes. 

Source: ACIR staff estimates. 
Table 3-5 

Selective Sales: Parimutuel Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$336 

0 

231 

297 

2,223 

210 

537 

108 

0 

1,848 

0 

0 

9 

923 

0 

44 

0 

322 

563 

36 

469 

565 

376 

84 

0 

0 

12 

215 

0 

187 

1,013 

144 

3,171 

0 

0 

408 

42 

95 

422 

155 

0 

3 1 

0 

0 

0 

10 

0 

200 

295 

0 

7 

$15,588 

Capacity 

Per 

Capita 

$3.81 

0.00 

3.30 

5.74 

3.84 

2.97 

7.71 

7.89 

0.00 

7.41 

0.00 

0.00 

0.41 

3.65 

0.00 

0.69 

0.00 

3.94 

5.73 

1.41 

4.86 

4.42 

1.89 

0.92 

0.00 

0.00 

0.64 

6.09 

0.00 

8.52 

6.10 

4.53 

8.13 

0.00 

0.00 

1.73 

0.58 

1.61 

1.62 

7.31 

0.00 

1.96 

0.00 

0.00 

0.00 

0.89 

0.00 

2.07 

6.94 

0.00 

0.66 

$2.98 

Tax 

Capacity 

IndexIRank 

128.1 / 17 

0.0 / B 

110.9 / 19 

192.9 / 10 

129.1 / 16 

99.7 / 20 

259.1 / 4 

265.2 / 3 

0.0 / B 

249.0 / 5 

0.0 / B 

0.0 / B 

13.9 / 34 

122.6 / 18 

0.0 / B 

23.2 / 30 

0.0 / B 

132.3 / 15 

192.5 / 11 

47.3 1 27 

163.5 / 12 

148.7 / 14 

63.4 / 23 

30.8 1 28 

0.0 / B 

0.0 / B 

21.5 / 32 

204.6 / 9 

0.1 / 35 

286.3 / 1 

205.1 / 8 

152.3 / 13 

273.1 / 2 

0.0 / B 

0.0 / B 

58.2 / 24 

19.4 / 33 

54.2 / 26 

54.6 / 25 

245.5 / 6 

0.0 / B 

66.0 / 22 

0.0 / B 

0.0 / B 

0.0 / B 

29.9 / 29 

0.0 / B 

69.6 / 21 

233.3 1 7 

0.0 / B 

22.1 / 31 

100.0 

Tax 

Capacity 

$15 

0 

11 

14 

101 

10 

24 

5 

0 

84 

0 

0 

0 

42 

0 

2 

0 

15 

26 

2 

2 1 

26 

17 

4 

0 

0 

1 

10 

0 

9 

46 

7 

145 

0 

0 

19 

2 

4 

19 

7 

0 

1 

0 

0 

0 

0 

0 

9 

13 

0 

0 

$710 

Tax 

Revenue 

$0 

0 

11 

2 1 

123 

8 

64 

0 

0 

120 

0 

0 

0 

60 

0 

0 

0 

11 

25 

1 

14 

36 

23 

0 

0 

0 

0 

13 

0 

10 

7 

3 

101 

0 

0 

12 

2 

5 

13 

6 

0 

2 

0 

0 

0 

1 

0 

7 

11 

0 

0 

$710 

Revenue 

Per 

Capita 

$0.00 

0.00 

3.59 

8.75 

4.66 

2.51 

20.18 

0.45 

0.00 

10.52 

0.00 

0.00 

0.41 

5.20 

0.00 

0.00 

0.00 

3.06 

5.62 

1.01 

3.28 

6.19 

2.51 

0.00 

0.00 

0.00 

0.19 

7.82 

0.01 

10.35 

0.92 

1.75 

5.66 

0.00 

0.00 

1.08 

0.64 

1.91 

1.09 

6.32 

0.00 

3.09 

0.00 

0.00 

0.00 

1.28 

0.00 

1.60 

5.66 

0.00 

0.09 

$2.98 

Tax 

Effort 

IndexIRank 

0.0 / z 

0.0 / z 

108.8 / 15 

152.5 / 4 

121.2 / 12 

84.5 / 19 

261.7 / 2 

5.7 1 32 

0.0 / z 

142.0 1 7 

0.0 / z 

0.0 I z 

99.2 / 16 

142.6 / 6 

0.0 / z 

0.0 1 Z 

0.0 / z 

77.9 / 21 

98.1 / 17 

72.0 / 23 

67.3 / 25 

139.9 / 8 

133.0 / 9 

0.0 / z 

0.0 / z 

0.0 / z 

30.2 / 29 

128.4 / 10 

395.0 / 1 

121.5 / 11 

15.0 / 30 

38.5 / 28 

69.7 1 24 

0.0 / z 

0.0 / z 

62.6 / 27 

110.0 / 14 

118.3 / 13 

67.2 1 26 

86.5 / 18 

0.0 / z 

157.4 / 3 

0.0 / z 

0.0 / z 

0.0 1 z 

143.6 / 5 

0.0 1 z 

77.2 / 22 

81.6 / 20 

0.0 / z 

14.0 / 31 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 4.6%. 

*Tax base is parimutuel handle in millions of dollars. 

B = Base is zero. Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-6 

Selective Sales Taxes: Motor Fuels - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

2,197 

327 

1,808 

1,424 

12,679 

1,715 

1,494 

371 

179 

5,862 

3,770 

344 

538 

5,311 

3,167 

1,621 

1,475 

1,984 

2,419 

642 

2,209 

2,577 

4,368 

2,209 

1,447 

3,015 

538 

946 

583 

479 

3,589 

935 

6,346 

3,468 

464 

5,434 

2,156 

1,464 

5,101 

40 1 

1,886 

488 

2,961 

10,187 

822 

280 

3,131 

2,127 

867 

2,316 

438 

122,560 

Capacity 

Per 

Capita 

$60.79 

69.87 

63.12 

67.17 

53.51 

59.07 

52.38 

66.46 

31.82 

57.40 

70.21 

36.31 

59.55 

51.24 

64.08 

62.53 

67.01 

59.26 

60.06 

61.34 

55.97 

49.26 

53.49 

58.61 

61.62 

66.71 

72.52 

65.54 

69.26 

53.36 

52.81 

71.78 

39.71 

61.69 

75.40 

56.28 

72.69 

60.61 

47.89 

46.08 

62.71 

76.66 

69.20 

69.24 

55.59 

58.32 

61.07 

53.67 

49.85 

53.98 

95.78 

$57.13 

Tax 

Capacity 

IndexIRank 

106.4 / 25 

122.3 / 8 

110.5 / 18 

117.6 / 12 

93.7 1 39 

103.4 1 30 

91.7 / 43 

116.3 1 15 

55.7 1 51 

100.5 / 33 

122.9 / 7 

63.6 / 50 

104.2 / 28 

89.7 / 44 

112.2 / 17 

109.5 / 20 

117.3 / 13 

103.7 1 29 

105.1 / 27 

107.4 / 23 

98.0 / 35 

86.2 / 46 

93.6 / 40 

102.6 1 31 

107.9 1 22 

116.8 / 14 

126.9 / 5 

114.7 / 16 

121.2 / 9 

93.4 / 41 

92.4 / 42 

125.7 / 6 

69.5 / 49 

108.0 / 21 

132.0 / 3 

98.5 / 34 

127.2 / 4 

106.1 / 26 

83.8 / 47 

80.7 1 48 

109.8 / 19 

134.2 / 2 

121.1 / 11 

121.2 / 10 

97.3 / 36 

102.1 / 32 

106.9 / 24 

94.0 / 38 

87.3 1 45 

94.5 / 37 

167.7 / 1 

100.0 

Tax 

Capacity 

$244 

36 

201 

158 

1,411 

191 

166 

4 1 

20 

652 

420 

38 

60 

591 

352 

180 

164 

221 

269 

7 1 

246 

287 

486 

246 

161 

335 

60 

105 

65 

53 

399 

104 

706 

386 

52 

605 

240 

163 

568 

45 

210 

54 

330 

1,134 

9 1 

3 1 

348 

237 

97 

258 

49 

$13,638 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Tax 

Revenue 

$282 

36 

224 

152 

1,158 

187 

205 

40 

25 

725 

386 

58 

79 

656 

335 

182 

149 

196 

362 

89 

297 

281 

620 

350 

137 

206 

81 

128 

92 

64 

303 

104 

410 

408 

54 

623 

191 

127 

622 

46 

247 

55 

288 

987 

112 

37 

328 

349 

159 

370 

36 

13,638 

Revenue 

Per 

Capita 

$70.17 

68.79 

70.41 

64.25 

43.92 

57.78 

64.58 

63.74 

40.34 

63.77 

64.55 

55.41 

78.66 

56.89 

60.96 

63.25 

60.74 

52.65 

80.75 

76.35 

67.63 

48.22 

68.26 

83.46 

52.35 

40.90 

98.65 

79.43 

98.11 

64.22 

40.12 

71.84 

23.06 

65.16 

78.43 

57.95 

57.79 

47.33 

52.45 

47.38 

73.80 

78.02 

60.58 

60.29 

68.28 

69.89 

57.45 

79.15 

82.08 

77.58 

70.37 

$57.13 

Tax 

Effort 

IndexIRank 

115.4 / 20 

98.5 1 32 

111.6 / 21 

95.7 1 36 

82.1 / 45 

97.8 / 34 

123.3 / 13 

95.9 1 35 

126.8 / 11 

111.1 / 22 

91.9 / 39 

152.6 / 2 

132.1 / 9 

111.0 / 23 

95.1 / 37 

101.2 / 30 

90.6 1 40 

88.8 / 41 

134.4 / 8 

124.5 / 12 

120.8 / 16 

97.9 / 33 

127.6 / 10 

142.4 / 5 

85.0 / 44 

61.3 / 50 

136.0 / 7 

121.2 / 15 

141.7 / 6 

120.3 / 17 

76.0 / 48 

100.1 / 31 

58.1 / 51 

105.6 / 25 

104.0 / 26 

103.0 / 27 

79.5 / 46 

78.1 / 47 

109.5 / 24 

102.8 / 28 

117.7 / 19 

101.8 / 29 

87.5 / 42 

87.1 / 43 

122.8 / 14 

119.8 / 18 

94.1 / 38 

147.5 1 3 

164.7 / 1 

143.7 / 4 

73.5 / 49 

100.0 

Representative Rate = $0.11 per gallon. 

*Tax base is motor fuel sales in millions of gallons, excluding use by state and local governments. 

Source: ACIR staff estimates. 

- 75 - 
Table 3-7 

Selective Sales: Insurance Premiums - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

N evada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$4,229 

836 

3,636 

1,832 

34,085 

3,708 

4,567 

1,078 

1?023 

12,476 

6,147 

1,447 

902 

13,487 

5,874 

3,427 

2,986 

3,461 

5,308 

1,325 

5,417 

7,112 

12,574 

4,947 

2,253 

5,707 

778 

1,978 

992 

1,358 

8,927 

1,440 

24,900 

5,706 

764 

11,064 

3,575 

2,961 

14,882 

1,350 

3,140 

711 

4,939 

18,629 

1,364 

524 

4,953 

4,523 

1,584 

5,166 

469 

$276,520 

Capacity 

Per 

Capita 

$17.25 

26.32 

18.70 

12.73 

21.20 

18.82 

23.59 

28.42 

26.80 

18.00 

16.87 

22.51 

14.72 

19.17 

17.51 

19.48 

19.98 

15.23 

19.42 

18.66 

20.22 

20.03 

22.69 

19.35 

14.14 

18.61 

15.45 

20.19 

17.38 

22.32 

19.36 

16.28 

22.96 

14.96 

18.29 

16.88 

17.76 

18.07 

20.59 

22.87 

15.38 

16.47 

17.00 

18.66 

13.60 

16.04 

14.23 

16.82 

13.41 

17.74 

15.10 

$18.99 

Tax 

Capacity 

Index/Rank 

90.8 1 33 

138.6 / 3 

98.5 / 22 

67.0 / 51 

111.6 / 10 

99.1 1 21 

124.2 / 4 

149.7 / 1 

141.1 / 2 

94.8 / 28 

88.8 / 36 

118.6 / 8 

77.5 / 46 

100.9 / 20 

92.2 / 31 

102.6 / 16 

105.2 / 15 

80.2 / 43 

102.3 / 17 

98.2 / 24 

106.5 / 12 

105.5 / 14 

119.5 / 7 

101.9 / 19 

74.4 / 48 

98.0 / 25 

81.4 / 41 

106.3 / 13 

91.5 / 32 

117.5 / 9 

101.9 / 18 

85.7 / 39 

120.9 / 5 

78.8 / 45 

96.3 / 26 

88.9 1 35 

93.5 / 29 

95.1 / 27 

108.4 / 11 

120.4 1 6 

81.0 / 42 

86.7 1 38 

89.5 / 34 

98.3 / 23 

71.6 1 49 

84.5 / 40 

74.9 1 47 

88.6 1 37 

70.6 1 50 

93.4 / 30 

79.5 / 44 

100.0 

Tax 

Capacity 

$69 

14 

60 

30 

559 

61 

75 

18 

17 

205 

101 

24 

15 

221 

96 

56 

49 

57 

87 

22 

89 

117 

206 

81 

37 

94 

13 

32 

16 

22 

146 

24 

408 

94 

13 

181 

59 

49 

244 

22 

5 1 

12 

81 

305 

22 

9 

81 

74 

26 

85 

8 

$4,534 

Tax 

Revenue 

$90 

18 

55 

40 

655 

44 

93 

17 

0 

188 

9 1 

29 

21 

116 

Revenue 

Per 

Capita 

$22.39 

33.70 

17.39 

17.03 

24.83 

13.51 

29.25 

27.94 

0.00 

16.51 

15.28 

27.91 

20.44 

10.06 

12.83 

19.29 

30.07 

28.84 

27.74 

16.34 

18.73 

28.11 

12.87 

18.25 

20.70 

19.70 

25.18 

18.39 

30.36 

19.12 

13.49 

29.17 

16.47 

18.39 

18.45 

15.90 

29.59 

15.41 

17.27 

17.88 

12.68 

22.99 

19.11 

23.13 

16.14 

16.55 

19.04 

13.93 

22.77 

11.17 

16.09 

$18.99 

Tax 

Effort 

Index/Rank 

129.9 / 15 

128.0 / 16 

93.0 / 32 

133.8 / 14 

117.1 / 22 

71.8 / 45 

124.0 / 17 

98.3 / 29 

0.0 / 51 

91.7 / 34 

90.6 / 36 

124.0 / 19 

138.8 / 12 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 1.64%. 

*Tax base is gross insurance premiums in millions of dollars. 

Source: ACIR staff estimates. 
Table 3-8 

Selective Sales: Tobacco Products - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

462.8 

67.4 

332.8 

299.1 

2,654.0 

362.5 

349.8 

88.9 

75.5 

1,387.0 

758.7 

73.4 

102.4 

1,404.7 

751.5 

321.9 

283.3 

687.4 

562.4 

149.0 

534.0 

680.3 

1,161.9 

472.5 

302.9 

652.0 

85.7 

170.2 

135.0 

197.4 

881.6 

127.7 

2,075.9 

971.3 

71.4 

1,369.9 

416.0 

319.3 

1,385.6 

128.4 

420.3 

74.4 

612.3 

1,873.3 

111.8 

77.0 

766.0 

423.5 

215.2 

512.2 

64.7 

28,464.2 

Capacity 

Per 

Capita 

$17.96 

20.19 

16.30 

19.79 

15.71 

17.51 

17.20 

22.31 

18.82 

19.05 

19.82 

10.87 

15.90 

19.01 

21.33 

17.42 

18.05 

28.80 

19.59 

19.98 

18.98 

18.24 

19.96 

17.59 

18.09 

20.24 

16.19 

16.54 

22.51 

30.87 

18.20 

13.75 

18.22 

24.24 

16.27 

19.90 

19.67 

18.55 

18.25 

20.70 

19.60 

16.40 

20.07 

17.86 

10.61 

22.46 

20.95 

14.99 

17.35 

16.74 

19.84 

$18.61 

Tax 

Capacity 

IndexIRank 

96.5 1 33 

108.5 / 11 

87.6 1 43 

106.3 / 18 

84.4 / 47 

94.1 / 36 

92.4 / 39 

119.9 / 6 

101.2 / 25 

102.4 / 22 

106.5 / 17 

58.4 / 50 

85.5 / 46 

102.1 / 23 

114.6 / 7 

93.6 / 37 

97.0 / 32 

154.7 / 2 

105.3 / 21 

107.4 / 13 

102.0 / 24 

98.0 1 28 

107.2 / 14 

94.5 / 35 

97.2 / 31 

108.7 / 10 

87.0 1 45 

88.9 / 41 

121.0 / 4 

165.9 1 1 

97.8 / 30 

73.9 1 49 

97.9 / 29 

130.2 / 3 

87.4 1 44 

106.9 / 15 

105.7 / 19 

99.7 / 26 

98.0 / 27 

111.3 / 9 

105.3 1 20 

88.1 / 42 

107.8 / 12 

96.0 / 34 

57.0 / 51 

120.7 / 5 

112.6 / 8 

80.6 / 48 

93.2 / 38 

90.0 1 40 

106.6 1 16 

100.0 

Tax 

Capacity 

$72 

11 

52 

47 

414 

57 

55 

14 

12 

216 

118 

11 

16 

219 

117 

50 

44 

107 

88 

23 

83 

106 

181 

74 

47 

102 

13 

27 

2 1 

3 1 

138 

20 

324 

152 

11 

214 

65 

50 

216 

20 

66 

12 

96 

292 

17 

12 

120 

66 

34 

80 

10 

$4,443 

Tax 

Revenue 

$84 

5 

50 

63 

261 

52 

90 

12 

10 

286 

88 

20 

10 

238 

77 

59 

45 

19 

87 

29 

67 

177 

126 

85 

37 

104 

14 

29 

20 

33 

217 

15 

495 

17 

12 

185 

75 

59 

239 

29 

30 

10 

82 

374 

13 

13 

36 

97 

35 

129 

5 

$4,443 

Revenue 

Per 

Capita 

$20.95 

10.00 

15.54 

26.57 

9.89 

16.18 

28.48 

19.70 

15.20 

25.19 

14.74 

18.71 

10.15 

20.65 

13.96 

20.48 

18.32 

5.03 

19.49 

25.05 

15.24 

30.42 

13.89 

20.27 

14.01 

20.62 

16.51 

17.92 

21.62 

33.08 

28.65 

10.07 

27.81 

2.66 

18.09 

17.18 

22.73 

21.84 

20.18 

30.03 

8.92 

14.78 

17.16 

22.85 

8.01 

24.38 

6.32 

22.06 

18.12 

27.10 

9.53 

$18.61 

Tax 

Effort 

IndexIRank 

116.6 / 15 

49.5 1 46 

95.3 / 30 

134.3 1 9 

62.9 1 45 

92.4 / 31 

165.6 / 3 

88.3 / 33 

80.8 / 36 

132.2 / 10 

74.4 / 40 

172.1 / 1 

63.8 / 44 

108.7 / 20 

65.5 1 43 

117.5 / 14 

101.5 / 27 

17.5 / 50 

99.5 / 28 

125.4 / 12 

80.3 1 37 

166.8 / 2 

69.6 / 42 

115.3 1 17 

77.4 / 38 

101.9 / 26 

101.9 / 25 

108.3 / 22 

96.0 / 29 

107.1 / 23 

157.4 1 5 

73.2 1 41 

152.7 / 6 

11.0 / 51 

111.2 / 18 

86.3 / 34 

115.6 / 16 

117.8 / 13 

110.6 / 19 

145.0 / 8 

45.5 / 48 

90.1 1 32 

85.5 1 35 

127.9 / 11 

75.5 / 39 

108.5 / 21 

30.2 / 49 

147.1 / 7 

104.5 / 24 

161.8 / 4 

48.0 1 47 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $0.156 per package. 

*Tax base is cigarette sales in millions of packs. 

Source: ACIR staff estimates. 
Table 3-9 

Selective Sales: Amusements - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New Y ork 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$205 

46 

406 

182 

14,252 

741 

437 

83 

225 

2,918 

595 

180 

78 

2,248 

475 

249 

201 

290 

478 

93 

633 

889 

1,100 

552 

116 

774 

7 5 

171 

3,472 

179 

3,176 

147 

7,169 

512 

46 

1,529 

259 

283 

1,357 

113 

260 

65 

568 

2,002 

242 

156 

545 

568 

142 

514 

45 

$52,043 

Capacity 

Per 

Capita 

$0.52 

0.90 

1.31 

0.80 

5.56 

2.36 

1.42 

1.38 

3.70 

2.64 

1.02 

1.75 

0.80 

2.01 

0.89 

0.89 

0.84 

0.80 

1.10 

0.82 

1.48 

1.57 

1.25 

1.35 

0.46 

1.58 

0.94 

1.10 

38.17 

1.85 

4.32 

1.04 

4.15 

0.84 

0.69 

1.46 

0.81 

1.08 

1.18 

1.20 

0.80 

0.95 

1.23 

1.26 

1.51 

2.99 

0.98 

1.33 

0.76 

1.11 

0.91 

$2.24 

Tax 

Capacity 

IndexJRank 

23.4 / 50 

40.2 / 37 

58.5 / 21 

35.5 / 47 

248.0 / 2 

105.2 / 8 

63.1 / 17 

61.3 / 18 

164.7 / 5 

117.8 / 7 

45.7 / 32 

78.2 / 11 

35.7 / 45 

89.4 / 9 

39.6 / 39 

39.7 / 38 

37.6 / 41 

35.7 / 44 

49.0 / 28 

36.7 / 42 

66.1 / 15 

70.0 / 13 

55.5 / 23 

60.4 / 19 

20.4 / 51 

70.6 / 12 

41.8 / 35 

48.9 / 29 

1701.8 / 1 

82.3 / 10 

192.7 / 3 

46.5 / 31 

184.9 / 4 

37.6 / 40 

30.8 / 49 

65.3 / 16 

36.0 / 43 

48.4 / 30 

52.5 / 26 

53.6 / 25 

35.6 / 46 

42.2 / 34 

54.7 / 24 

56.1 / 22 

67.5 / 14 

133.4 / 6 

43.8 / 33 

59.1 / 20 

33.7 / 48 

49.4 / 27 

40.7 / 36 

100.0 

Tax 

Capacity 

$2 

0 

4 

2 

147 

8 

4 

1 

2 

30 

6 

2 

1 

23 

5 

3 

2 

3 

5 

1 

7 

9 

11 

6 

1 

8 

1 

2 

36 

2 

33 

2 

74 

5 

0 

16 

3 

3 

14 

1 

3 

1 

6 

21 

2 

2 

6 

6 

1 

5 

0 

$536 

Tax 

Revenue 

$0 

0 

0 

0 

1 

1 

14 

0 

0 

3 

0 

0 

0 

9 

0 

0 

1 

1 

0 

0 

1 

12 

0 

0 

0 

1 

0 

5 

245 

0 

202 

0 

14 

3 

1 

0 

2 

1 

0 

0 

14 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

$536 

Revenue 

Per 

Capita 

$0.02 

0.43 

0.13 

0.15 

0.02 

0.16 

4.47 

0.09 

0.00 

0.29 

0.00 

0.00 

0.00 

0.80 

0.05 

0.00 

0.34 

0.21 

0.07 

0.20 

0.33 

2.02 

0.01 

0.00 

0.12 

0.19 

0.00 

2.98 

261.33 

0.15 

26.67 

0.17 

0.80 

0.44 

2.09 

0.00 

0.52 

0.29 

0.02 

0.23 

4.27 

0.00 

0.00 

0.13 

0.00 

0.38 

0.02 

0.05 

0.00 

0.00 

0.00 

$2.24 

Tax 

Effort 

IndexIRank 

3.1 / 33 

48.2 / 10 

10.3 / 26 

19.3 / 19 

0.4 / 38 

6.7 / 28 

315.5 / 4 

6.2 / 29 

0.0 / z 

10.8 / 24 

0.0 / z 

0.0 / z 

0.0 / z 

39.9 / 12 

5.8 / 31 

0.0 / z 

40.1 / 11 

26.6 / 13 

6.2 / 30 

23.9 / 16 

22.0 / 17 

128.4 / 7 

0.6 / 36 

0.0 / z 

26.1 / 15 

11.9 / 23 

0.0 / z 

271.7 / 6 

684.6 / 1 

8.4 / 27 

617.0 / 2 

16.4 / 21 

19.2 / 20 

52.4 / 9 

302.3 / 5 

0.0 / z 

64.7 / 8 

26.3 / 14 

1.6 / 35 

19.4 / 18 

534.6 / 3 

0.0 / z 

0.2 / 39 

10.4 / 25 

0.0 / z 

12.7 / 22 

1.8 I 34 

3.5 / 32 

0.0 / z 

0.4 / 37 

0.0 I z 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 1.03%. 

"Tax base is amusement receipts in millions of dollars. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3- 10 

Selective Sales Taxes: Public Utilities - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$5,061 

535 

3,495 

2,455 

36,795 

3,339 

4,496 

882 

895 

13,896 

7,209 

965 

1,009 

15,503 

6,923 

3,266 

3,278 

4,257 

6,191 

1,119 

4,122 

7,555 

12,051 

4,187 

2,846 

5,012 

820 

1,678 

1,228 

1,144 

11,205 

1,481 

20,936 

7,195 

672 

13,084 

3,836 

2,935 

13,451 

1,045 

3,912 

618 

5,628 

22,901 

1,655 

570 

5,358 

4,714 

1,832 

5,022 

730 

$290,993 

Capacity 

Per 

Capita 

$44.44 

36.26 

38.72 

36.74 

49.28 

36.49 

50.02 

50.05 

50.48 

43.17 

42.59 

32.31 

35.45 

47.45 

44.45 

39.98 

47.24 

40.34 

48.78 

33.96 

33.13 

45.82 

46.82 

35.26 

38.46 

35.19 

35.06 

36.89 

46.30 

40.47 

52.31 

36.07 

41.57 

40.62 

34.63 

43.00 

41.03 

38.57 

40.07 

38.13 

41.26 

30.80 

41.73 

49.39 

35.52 

37.60 

33.16 

37.75 

33.42 

37.14 

50.62 

$43.04 

Tax 

Capacity 

IndexJRank 

103.3 / 15 

84.3 / 38 

90.0 / 28 

85.4 / 36 

114.5 / 7 

84.8 / 37 

116.2 / 5 

116.3 1 4 

117.3 / 3 

100.3 / 16 

99.0 / 18 

75.1 / 50 

82.4 / 41 

110.3 / 9 

103.3 / 14 

92.9 / 27 

109.8 / 10 

93.7 / 25 

113.4 / 8 

78.9 / 46 

77.0 1 49 

106.5 / 13 

108.8 / 11 

81.9 / 42 

89.4 / 30 

81.8 / 43 

81.5 / 44 

85.7 / 35 

107.6 / 12 

94.0 / 24 

121.6 / 1 

83.8 / 39 

96.6 / 20 

94.4 / 23 

80.5 / 45 

99.9 / 17 

95.3 / 22 

89.6 / 29 

93.1 / 26 

88.6 / 31 

95.9 / 21 

71.6 / 51 

97.0 / 19 

114.8 / 6 

82.5 / 40 

87.4 / 33 

77.0 / 48 

87.7 / 32 

77.7 1 47 

86.3 / 34 

117.6 / 2 

100.0 

Tax 

Capacity 

$179 

19 

123 

87 

1,299 

118 

159 

3 1 

32 

491 

255 

34 

36 

547 

244 

115 

116 

150 

219 

40 

146 

267 

425 

148 

100 

177 

29 

59 

43 

40 

396 

52 

739 

254 

24 

462 

135 

104 

475 

37 

138 

22 

199 

809 

58 

20 

189 

166 

65 

177 

26 

$10,274 

Tax 

Revenue 

$240 

2 

110 

43 

903 

52 

289 

25 

76 

752 

73 

82 

8 

1,054 

0 

10 

58 

56 

104 

27 

153 

0 

64 

88 

22 

236 

9 

17 

19 

8 

941 

19 

1,338 

316 

16 

689 

63 

54 

575 

70 

47 

1 

42 

678 

36 

18 

337 

279 

16 

152 

6 

$10,274 

Revenue 

Per 

Capita 

$59.61 

3.74 

34.50 

18.21 

34.25 

16.04 

91.14 

39.95 

120.99 

66.19 

12.28 

78.27 

7.60 

91.40 

0.02 

3.48 

23.73 

15.02 

23.28 

23.25 

34.94 

0.00 

6.99 

20.94 

8.48 

47.00 

10.34 

10.86 

20.83 

8.30 

124.45 

13.03 

75.25 

50.48 

23.36 

64.09 

19.22 

20.16 

48.53 

72.36 

14.01 

1.47 

8.79 

41.43 

21.85 

33.29 

58.97 

63.19 

8.42 

31.82 

11.09 

$43.04 

Tax 

Effort 

IndexJRank 

134.1 / 12 

10.3 / 47 

89.1 / 17 

49.6 / 29 

69.5 / 22 

44.0 / 33 

182.2 / 6 

79.8 / 21 

239.7 / 2 

153.3 / 10 

28.8 / 39 

242.2 / 1 

21.4 / 43 

192.6 / 4 

0.1 / 50 

8.7 / 48 

50.2 / 28 

37.2 / 34 

47.7 / 30 

68.5 / 23 

105.5 / 16 

0 / z 

14.9 / 46 

59.4 / 26 

22.1 / 41 

133.6 / 13 

29.5 / 37 

29.4 / 38 

45.0 / 32 

20.5 / 45 

237.9 / 3 

36.1 / 35 

181.0 / 7 

124.3 / 14 

67.5 / 24 

149.0 / 11 

46.9 / 31 

52.3 / 27 

121.1 / 15 

189.8 / 5 

33.9 / 36 

4.8 / 49 

21.1 / 44 

83.9 / 20 

61.5 / 25 

88.6 / 18 

177.9 / 8 

167.4 / 9 

25.2 / 40 

85.7 / 19 

21.9 / 42 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 3.53%. 

*Tax base is public utility sales in millions of dollars. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3- 1 1 

Selective Sales: Alcoholic Beverages, Total - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

Tax 

Capacity 

IndedRank 

72.7 / 46 

139.2 / 4 

115.3 / 13 

66.0 / 49 

117.4 / 11 

114.5 / 15 

118.2 / 10 

128.6 / 5 

216.6 / 1 

125.6 / 6 

98.5 / 26 

105.2 / 18 

80.3 / 40 

104.1 / 19 

82.5 / 39 

75.3 / 44 

72.9 / 45 

72.0 / 47 

91.6 / 32 

99.2 / 25 

115.3 / 14 

124.0 / 7 

100.4 / 23 

105.7 / 17 

76.3 / 42 

85.2 / 36 

102.8 / 22 

87.9 / 35 

209.9 / 2 

200.4 1 3 

112.7 / 16 

97.6 / 28 

104.1 / 20 

83.6 / 38 

96.9 1 29 

79.7 / 41 

71.2 1 48 

94.4 / 31 

84.1 / 37 

116.7 / 12 

98.3 / 27 

90.2 / 33 

75.4 / 43 

95.1 / 30 

52.2 / 51 

120.5 1 8 

89.3 / 34 

100.1 / 24 

59.6 / 50 

120.3 / 9 

103.9 / 21 

100.0 

Tax 

Capacity 

$40 

10 

5 1 

2 1 

426 

5 1 

52 

11 

19 

196 

81 

15 

11 

165 

62 

30 

25 

37 

57 

16 

70 

99 

126 

61 

27 

59 

12 

19 

27 

28 

117 

19 

255 

72 

9 

118 

32 

35 

137 

16 

45 

9 

49 

214 

12 

9 

70 

61 

16 

79 

7 

$3,286 

Tax 

Revenue 

$133 

14 

38 

26 

135 

25 

33 

5 

7 

422 

189 

21 

10 

90 

37 

16 

43 

49 

78 

3 1 

29 

84 

91 

52 

35 

25 

14 

13 

13 

11 

58 

16 

201 

128 

6 

70 

42 

11 

130 

8 

102 

9 

123 

333 

17 

14 

93 

103 

11 

44 

1 

$3,286 

Revenue 

Per 

Capita 

$33.03 

26.17 

11 .go 

10.95 

5.11 

7.69 

10.29 

8.26 

11.51 

37.11 

31.64 

19.58 

9.63 

7.78 

6.73 

5.64 

17.60 

13.09 

17.42 

26.89 

6.49 

14.35 

10.07 

12.46 

13.55 

4.93 

16.77 

8.18 

14.00 

10.62 

7.72 

10.82 

11.29 

20.50 

8.69 

6.53 

12.61 

4.05 

10.98 

7.86 

30.47 

12.37 

25.92 

20.34 

10.21 

26.60 

16.26 

23.37 

5.47 

9.19 

2.85 

$13.76 

Tax 

Effort 

IndedRank 

329.8 / 1 

136.6 / 14 

75.0 / 29 

120.6 / 20 

31.6 / 49 

48.8 / 42 

63.3 / 34 

46.7 / 44 

38.6 / 47 

214.7 / 5 

233.4 / 3 

135.2 / 15 

87.1 / 24 

54.3 / 39 

59.2 / 36 

54.4 / 38 

175.4 / 8 

132.0 / 17 

138.1 / 13 

196.9 / 6 

40.9 / 46 

84.1 / 26 

72.8 / 30 

85.6 1 25 

129.0 / 18 

42.0 / 45 

118.5 / 21 

67.7 / 31 

48.5 / 43 

38.5 / 48 

49.8 / 40 

80.6 1 27 

78.8 / 28 

178.1 / 7 

65.2 / 33 

59.6 / 35 

128.7 / 19 

31.2 / 50 

94.9 / 23 

48.9 / 41 

225.2 / 4 

99.6 / 22 

249.6 / 2 

155.3 / 11 

142.1 / 12 

160.4 / 10 

132.2 / 16 

169.7 1 9 

66.7 / 32 

55.5 / 37 

19.9 / 51 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for distilled spirits, wine, and beer. 

Source: ACIR staff estimates. 
Table 3- 12 

Alcoholic Beverages Tax: Distilled Spirits - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

5,161 

1,426 

5,915 

2,635 

51,960 

6,617 

7,634 

1,585 

3,085 

25,829 

11,520 

1,767 

1,188 

21,476 

7,645 

3,179 

2,982 

4,764 

7,188 

2,135 

9,934 

13,951 

16,758 

8,561 

3,557 

6,764 

1,377 

2,298 

4,115 

4,354 

16,224 

2,050 

34,515 

9,397 

1,265 

12,206 

4,242 

4,017 

15,246 

2,006 

6,347 

1,243 

6,269 

22,383 

1,467 

1,138 

8,674 

7,419 

1,570 

9,636 

958 

415,639 

Capacity 

Per 

Capita 

$5.17 

11.02 

7.47 

4.50 

7.94 

8.25 

9.68 

10.26 

19.85 

9.15 

7.76 

6.75 

4.76 

7.50 

5.60 

4.44 

4.90 

5.15 

6.46 

7.39 

9.11 

9.65 

7.43 

8.22 

5.48 

5.42 

6.71 

5.76 

17.70 

17.57 

8.64 

5.69 

7.82 

6.05 

7.44 

4.57 

5.17 

6.02 

5.18 

8.35 

7.64 

7.07 

5.30 

5.51 

3.59 

8.57 

6.12 

6.78 

3.27 

8.13 

7.58 

$7.01 

Tax 

Capacity 

IndedRank 

73.7 / 43 

157.2 / 4 

106.6 1 22 

64.2 / 48 

113.2 / 16 

117.6 / 13 

138.2 / 6 

146.4 / 5 

283.1 / 1 

130.5 / 8 

110.7 / 18 

96.3 / 28 

67.9 / 46 

106.9 1 21 

79.9 1 36 

63.3 / 49 

69.9 / 45 

73.4 / 44 

92.1 / 30 

105.4 / 25 

129.9 / 9 

137.6 1 7 

105.9 / 24 

117.3 / 14 

78.2 / 38 

77.3 / 39 

95.8 / 29 

82.2 / 34 

252.6 / 2 

250.6 / 3 

123.2 / 10 

81.2 / 35 

111.5 / 17 

86.3 / 32 

106.1 / 23 

65.3 / 47 

73.8 / 42 

85.9 1 33 

73.9 / 41 

119.0 / 12 

108.9 / 19 

100.8 / 26 

75.6 / 40 

78.5 / 37 

51.2 / 50 

122.2 / 11 

87.3 / 31 

96.6 / 27 

46.6 / 51 

115.9 / 15 

108.1 / 20 

100.0 

Tax 

Capacity 

$21 

6 

24 

11 

209 

27 

31 

6 

12 

104 

46 

7 

5 

86 

3 1 

13 

12 

19 

29 

9 

40 

56 

67 

34 

14 

27 

6 

9 

17 

18 

65 

8 

139 

38 

5 

49 

17 

16 

61 

8 

26 

5 

25 

90 

6 

5 

35 

30 

6 

39 

4 

$1,674 

Tax 

Revenue 

$68 

7 

19 

13 

69 

13 

17 

3 

4 

215 

96 

11 

5 

46 

19 

8 

22 

25 

40 

16 

15 

43 

47 

27 

18 

13 

7 

7 

7 

5 

30 

8 

102 

65 

3 

36 

2 1 

6 

66 

4 

52 

4 

63 

170 

9 

7 

47 

52 

5 

22 

1 

$1,674 

Revenue 

Per 

Capita 

$16.82 

13.33 

6.06 

5.58 

2.60 

3.92 

5.24 

4.21 

5.86 

18.90 

16.11 

9.97 

4.90 

3.96 

3.43 

2.87 

8.96 

6.66 

8.87 

13.69 

3.31 

7.31 

5.13 

6.34 

6.90 

2.51 

8.54 

4.17 

7.13 

5.41 

3.93 

5.51 

5.75 

10.44 

4.42 

3.33 

6.42 

2.06 

5.59 

4.00 

15.52 

6.30 

13.20 

10.36 

5.20 

13.55 

8.28 

11 .go 

2.79 

4.68 

1.45 

$7.01 

Tax 

Effort 

IndedRank 

325.4 / 1 

120.9 / 21 

81.1 / 27 

124.0 / 20 

32.8 / 48 

47.5 / 41 

54.1 / 38 

41.0 / 44 

29.5 / 50 

206.5 / 4 

207.6 / 3 

147.7 / 12 

103.0 / 23 

52.9 / 39 

61.2 / 35 

64.7 / 34 

182.9 / 8 

129.4 / 16 

137.4 / 14 

185.4 / 7 

36.3 / 46 

75.7 / 29 

69.0 1 33 

77.2 1 28 

125.9 / 18 

46.3 1 42 

127.2 / 17 

72.3 / 32 

40.3 / 45 

30.8 / 49 

45.5 / 43 

96.8 / 24 

73.6 / 30 

172.6 / 10 

59.5 / 36 

72.7 / 31 

124.1 / 19 

34.3 / 47 

108.0 / 22 

48.0 / 40 

203.2 1 5 

89.1 / 25 

249.0 / 2 

188.2 / 6 

144.8 / 13 

158.1 / 11 

135.2 / 15 

175.7 / 9 

85.3 / 26 

57.6 / 37 

19.2 / 51 

100.0 

N0TE:AII per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $4.03 per gallon. 

*Tax base is distilled spirits in thousands of gallons. 

Source: ACIR staff estimates. 
Table 3- 13 

Alcoholic Beverages: Beer - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

2,420 

461 

3,066 

1,380 

20,374 

2,627 

2,132 

527 

543 

10,671 

4,128 

942 

723 

9,044 

3,895 

2,128 

1,592 

2,270 

3,324 

833 

3,388 

4,580 

6,761 

3,111 

1,736 

3,847 

740 

1,272 

1,076 

1,150 

5,211 

1,345 

11,910 

3,975 

511 

8,385 

1,922 

1,913 

9,510 

803 

2,386 

477 

3,046 

15,368 

731 

459 

4,120 

3,054 

1,229 

4,951 

426 

182,471 

Capacity 

Per 

Capita 

$4.23 

6.23 

6.77 

4.11 

5.43 

5.72 

4.72 

5.95 

6.10 

6.60 

4.86 

6.28 

5.06 

5.51 

4.98 

5.19 

4.57 

4.28 

5.22 

5.03 

5.43 

5.53 

5.23 

5.22 

4.67 

5.38 

6.30 

5.57 

8.09 

8.11 

4.85 

6.52 

4.71 

4.47 

5.24 

5.49 

4.10 

5.01 

5.64 

5.83 

5.01 

4.74 

4.50 

6.60 

3.12 

6.03 

5.08 

4.87 

4.46 

7.29 

5.89 

$5.38 

Tax 

Capacity 

IndexIRank 

78.8 / 48 

115.8 / 10 

125.9 / 4 

76.5 / 49 

101.1 / 22 

106.4 / 16 

87.9 / 40 

110.8 / 13 

113.5 / 11 

122.8 / 5 

90.4 / 37 

116.9 / 9 

94.1 / 31 

102.6 / 20 

92.7 / 35 

96.6 / 29 

85.0 / 43 

79.7 / 47 

97.1 / 27 

93.6 / 32 

100.9 / 23 

102.9 / 19 

97.3 / 26 

97.1 / 28 

86.9 / 42 

100.1 / 24 

117.2 / 8 

103.6 / 18 

150.5 / 2 

150.8 / 1 

90.2 / 38 

121.3 / 7 

87.6 / 41 

83.1 / 45 

97.6 / 25 

102.1 / 21 

76.2 / 50 

93.1 / 34 

105.0 / 17 

108.5 / 15 

93.3 / 33 

88.2 / 39 

83.7 / 44 

122.8 / 6 

58.1 / 51 

112.2 / 12 

94.5 / 30 

90.6 / 36 

83.0 / 46 

135.7 / 3 

109.6 / 14 

100.0 

Tax 

Capacity 

$17 

3 

22 

10 

143 

18 

15 

4 

4 

75 

29 

7 

5 

64 

27 

15 

11 

16 

23 

6 

24 

32 

48 

22 

12 

27 

5 

9 

8 

8 

37 

9 

84 

28 

4 

59 

14 

13 

67 

6 

17 

3 

21 

108 

5 

3 

29 

2 1 

9 

35 

3 

$1,283 

Tax 

Revenue 

$52 

5 

15 

10 

53 

10 

13 

2 

3 

165 

74 

8 

4 

35 

14 

6 

17 

19 

30 

12 

11 

33 

36 

20 

14 

10 

5 

5 

5 

4 

23 

6 

78 

50 

2 

27 

16 

4 

51 

3 

40 

3 

48 

130 

7 

6 

36 

40 

4 

17 

1 

$1,283 

Revenue 

Per 

Capita 

$12.90 

10.22 

4.65 

4.28 

2.00 

3.00 

4.02 

3.22 

4.49 

14.49 

12.36 

7.64 

3.76 

3.04 

2.63 

2.20 

6.87 

5.11 

6.80 

10.50 

2.54 

5.60 

3.93 

4.86 

5.29 

1.92 

6.55 

3.20 

5.47 

4.15 

3.02 

4.23 

4.41 

8.00 

3.39 

2.55 

4.92 

1.58 

4.29 

3.07 

11.90 

4.83 

10.12 

7.94 

3.99 

10.39 

6.35 

9.13 

2.14 

3.59 

1.11 

$5.38 

Tax 

Effort 

IndexIRank 

304.6 / 1 

164.1 / 10 

68.7 / 31 

103.9 / 21 

36.7 / 48 

52.5 / 41 

85.1 / 26 

54.2 / 38 

73.7 / 30 

219.4 / 5 

254.4 / 2 

121.7 / 15 

74.4 / 29 

55.1 / 37 

52.8 / 39 

42.4 / 47 

150.4 / 11 

119.3 I 18 

130.4 / 12 

208.6 / 6 

46.7 / 45 

101.3 / 23 

75.1 / 28 

93.2 / 25 

113.3 / 19 

35.8 / 49 

104.0 / 20 

57.4 / 36 

67.6 / 32 

51.2 / 42 

62.2 / 35 

64.8 / 33 

93.6 / 24 

179.1 / 8 

64.7 / 34 

46.5 / 46 

120.2 / 17 

31.6 / 50 

76.0 I 27 

52.6 / 40 

237.3 / 3 

101.8 / 22 

225.0 / 4 

120.3 / 16 

127.6 / 13 

172.3 / 9 

125.0 / 14 

187.3 / 7 

47.8 / 44 

49.2 1 43 

18.9 / 51 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $7.03 per barrel. 

*Tax base is beer sales in thousands of barrels. 

Source: ACIR staff estimates. 
Table 3- 14 

Alcoholic Beverages Tax: Wine - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

4,241 

1,719 

8,983 

1,902 

127,200 

10,001 

10,219 

1,590 

4,179 

30,106 

9,682 

2,638 

2,145 

26,386 

7,399 

3,691 

2,389 

3,077 

7,240 

2,491 

10,148 

18,922 

18,312 

8,088 

1,583 

8,120 

1,633 

2,119 

5,010 

3,307 

26,504 

3,049 

55,483 

10,671 

774 

16,855 

3,031 

9,159 

15,344 

3,161 

5,098 

744 

4,819 

27,955 

1,335 

1,837 

10,775 

16,194 

1,585 

9,395 

725 

569,013 

Capacity 

Per 

Capita 

$0.61 

1.91 

1.63 

0.47 

2.79 

1.79 

1.86 

1.48 

3.86 

1.53 

0.94 

1.45 

1.24 

1.32 

0.78 

0.74 

0.56 

0.48 

0.94 

1.24 

1.34 

1.88 

1.17 

1.12 

0.35 

0.93 

1.14 

0.76 

3.10 

1.92 

2.03 

1.22 

1.81 

0.99 

0.65 

0.91 

0.53 

1.97 

0.75 

1.89 

0.88 

0.61 

0.59 

0.99 

0.47 

1.99 

1.09 

2.13 

0.47 

1.14 

0.82 

$1.38 

Tax 

Capacity 

IndexJRank 

44.3 / 42 

138.4 / 9 

118.3 / 15 

33.8 / 50 

202.4 1 3 

129.9 / 14 

135.1 / 12 

107.3 / 17 

280.1 / 1 

111.1 / 16 

68.0 / 31 

105.0 / 18 

89.5 / 22 

96.0 / 20 

56.5 / 37 

53.7 / 40 

40.9 / 45 

34.6 / 47 

67.8 / 32 

89.8 / 21 

96.9 / 19 

136.4 / 11 

84.5 / 24 

80.9 / 27 

25.4 / 51 

67.7 / 33 

82.9 / 25 

55.4 / 38 

224.6 / 2 

139.0 / 8 

147.1 / 5 

88.2 / 23 

130.9 / 13 

71.6 / 30 

47.4 / 41 

65.8 / 34 

38.5 / 46 

143.0 / 7 

54.3 / 39 

137.0 / 10 

63.9 1 35 

44.1 / 43 

42.5 / 44 

71.6 / 29 

34.0 / 49 

144.1 / 6 

79.2 / 28 

154.1 / 4 

34.3 / 48 

82.6 / 26 

59.8 1 36 

100.0 

Tax 

Capacity 

$2 

1 

5 

1 

74 

6 

6 

1 

2 

17 

6 

2 

1 

15 

4 

2 

1 

2 

4 

1 

6 

11 

11 

5 

1 

5 

1 

1 

3 

2 

15 

2 

32 

6 

0 

10 

2 

5 

9 

2 

3 

0 

3 

16 

1 

1 

6 

9 

1 

5 

0 

$329 

Tax 

Revenue 

$13 

1 

4 

3 

14 

2 

3 

1 

1 

42 

19 

2 

1 

9 

4 

2 

4 

5 

8 

3 

3 

8 

9 

5 

4 

2 

1 

1 

1 

1 

6 

2 

20 

13 

1 

7 

4 

1 

13 

1 

10 

1 

12 

33 

2 

1 

9 

10 

1 

4 

0 

$329 

Revenue 

Per 

Capita 

$3.31 

2.62 

1.19 

1.10 

0.51 

0.77 

1.03 

0.83 

1.15 

3.72 

3.17 

1.96 

0.97 

0.78 

0.67 

0.57 

1.76 

1.31 

1.75 

2.70 

0.65 

1.44 

1.01 

1.25 

1.36 

0.49 

1.68 

0.82 

1.40 

1.06 

0.77 

1.08 

1.13 

2.05 

0.87 

0.66 

1.26 

0.41 

1.10 

0.79 

3.05 

1.24 

2.60 

2.04 

1.02 

2.67 

1.63 

2.34 

0.55 

0.92 

0.29 

$1.38 

Tax 

Effort 

IndexJRank 

542.4 / 1 

137.4 / 20 

73.2 / 35 

235.2 1 10 

18.4 / 51 

43.0 / 45 

55.4 1 41 

56.0 1 39 

29.9 / 49 

242.7 / 8 

338.3 / 5 

135.5 / 21 

78.2 / 32 

58.9 / 38 

86.6 / 29 

76.4 / 34 

312.7 / 6 

274.5 / 7 

186.8 / 16 

217.7 / 12 

48.7 / 43 

76.5 / 33 

86.5 / 30 

111.9 / 25 

387.4 / 3 

52.9 / 42 

147.0 / 18 

107.4 / 27 

45.3 / 44 

55.5 / 40 

38.2 / 47 

89.1 / 28 

62.7 / 37 

208.1 / 13 

133.2 / 23 

72.2 / 36 

237.9 / 9 

20.6 1 50 

147.0 / 19 

41.7 / 46 

346.5 1 4 

203.9 / 15 

443.6 / 2 

206.3 / 14 

218.0 / 11 

134.2 / 22 

149.1 / 17 

110.2 / 26 

115.7 / 24 

80.9 / 31 

34.7 1 48 

100.0 

N0TE:AIl per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $0.58 per gallon. 

*Tax base is wine sales in thousands of gallons. 

Source: ACIR staff estimates. 
Table 3- 15 

All License Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

Tax 

Capacity 

IndexIRank 

106.4 / 22 

124.2 / 9 

106.2 / 23 

95.2 / 37 

95.6 / 36 

128.1 / 6 

96.2 / 35 

110.6 / 20 

69.2 / 51 

121.3 / 13 

103.5 / 28 

86.9 1 46 

132.8 / 5 

91.9 / 42 

98.5 / 31 

125.6 / 7 

121.9 / 11 

96.9 1 34 

105.3 / 25 

105.4 / 24 

97.2 / 33 

86.7 / 47 

99.0 / 30 

113.0 / 18 

88.4 / 45 

103.8 / 26 

138.0 / 3 

119.1 / 14 

116.3 / 16 

121.4 / 12 

94.2 / 39 

115.1 / 17 

82.9 / 49 

94.4 / 38 

142.9 / 2 

92.5 / 40 

124.8 / 8 

118.5 / 15 

82.0 1 50 

91.6 / 43 

89.4 / 44 

136.2 / 4 

97.6 / 32 

106.7 / 21 

103.7 / 27 

123.1 / 10 

91.9 / 41 

112.3 / 19 

86.2 / 48 

103.5 / 29 

159.6 / 1 

100.0 

Tax 

Capacity 

$211 

32 

167 

111 

1,243 

204 

151 

34 

2 1 

680 

305 

45 

66 

523 

267 

179 

147 

178 

233 

61 

211 

249 

444 

234 

114 

257 

56 

94 

54 

60 

351 

82 

727 

291 

48 

490 

203 

157 

479 

44 

148 

48 

229 

861 

84 

32 

259 

244 

82 

244 

40 

$11,770 

Tax 

Revenue 

$169 

29 

170 

93 

697 

125 

135 

158 

24 

406 

105 

30 

49 

734 

136 

181 

101 

142 

282 

59 

112 

162 

365 

27 1 

131 

238 

61 

76 

46 

50 

454 

59 

644 

320 

39 

690 

241 

175 

895 

27 

75 

32 

301 

1620 

49 

34 

290 

1 84 

78 

170 

59 

$11,770 

Revenue 

Per 

Capita 

$42.06 

55.24 

53.49 

39.27 

26.45 

38.60 

42.66 

254.02 

37.55 

35.69 

17.58 

28.45 

48.33 

63.63 

24.75 

62.90 

41.34 

38.21 

62.84 

50.36 

25.49 

27.84 

40.16 

64.70 

50.17 

47.40 

73.76 

4'7.05 

49.38 

49.80 

60.10 

40.72 

36.20 

51.08 

56.47 

64.23 

72.91 

65.18 

75.50 

27.87 

22.50 

44.56 

63.14 

98.94 

29.61 

63.79 

50.75 

41.72 

40.20 

35.65 

115.19 

$49.30 

Tax 

Effort 

IndexIRank 

80.2 / 31 

90.2 / 24 

102.2 / 19 

83.7 / 28 

56.1 / 47 

61.1 / 44 

89.9 / 25 

465.7 / 1 

110.1 / 15 

59.7 / 45 

34.4 / 51 

66.4 1 40 

73.8 / 36 

140.4 / 6 

51.0 / 50 

101.6 / 20 

68.8 1 39 

80.0 / 34 

121.0 / 9 

96.9 / 21 

53.2 / 48 

65.1 / 42 

82.2 / 30 

116.2 / 11 

115.1 / 12 

92.6 / 23 

108.4 / 17 

80.1 / 33 

86.1 / 27 

83.2 1 29 

129.4 / 8 

71.8 / 37 

88.6 1 26 

109.8 / 16 

80.1 1 32 

140.9 / 5 

118.5 / 10 

111.6 / 14 

186.8 1 3 

61.7 / 43 

51.0 / 49 

66.3 / 41 

131.2 / 7 

188.0 / 2 

57.9 / 46 

105.1 / 18 

112.0 / 13 

75.4 / 35 

94.6 1 22 

69.9 / 38 

146.4 / 4 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for particular licenses. 

Source: ACIR staff estimates. 
Table 3-16 

License Taxes: Motor Vehicle Operators - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

2461.559 

300 

2324.591 

1723.753 

17444.64 

2284.364 

2314.612 

447.937 

384.736 

8016.239 

3910.454 

593.952 

692.404 

6949.622 

3597.585 

1900.998 

1655.82 

2248.381 

2755.943 

803.83 

2907.494 

3792.074 

6254.118 

2473.073 

1810.847 

3393.353 

582.085 

1089.797 

699.077 

737.852 

5793.689 

977.88 

9841.209 

4122.866 

443.002 

7336.386 

2243.223 

1959.765 

7555.006 

619.132 

2131.895 

483.89 

3025.458 

10809.078 

962.881 

385.132 

3804.113 

2980.717 

1298.585 

3211.33 

331.85 

156,868 

Capacity 

Per 

Capita 

$2.40 

2.26 

2.86 

2.87 

2.59 

2.77 

2.86 

2.82 

2.41 

2.77 

2.57 

2.21 

2.70 

2.36 

2.57 

2.58 

2.65 

2.37 

2.41 

2.71 

2.60 

2.55 

2.70 

2.31 

2.72 

2.65 

2.76 

2.66 

2.93 

2.90 

3.00 

2.64 

2.17 

2.58 

2.54 

2.68 

2.67 

2.86 

2.50 

2.51 

2.50 

2.68 

2.49 

2.59 

2.30 

2.82 

2.61 

2.65 

2.63 

2.64 

2.56 

$2.58 

Tax 

Capacity 

Index/Rank 

93.2 / 11 

87.6 / 12 

111.0 / 20 

111.2 / 21 

100.7 / 34 

107.6 / 16 

111.0 / 50 

109.6 / 37 

93.5 / 51 

107.3 / 31 

99.6 / 23 

85.8 1 47 

104.9 / 4 

91.7 / 40 

99.6 / 26 

100.3 1 9 

102.9 / 8 

91.8 / 17 

93.6 1 19 

105.1 / 27 

100.7 / 41 

99.1 / 46 

104.7 / 39 

89.8 / 28 

105.5 / 36 

102.7 / 24 

107.2 / 5 

103.3 / 10 

113.7 / 22 

112.5 1 35 

116.6 / 49 

102.6 / 7 

84.2 / 48 

100.3 / 25 

98.4 / 2 

103.9 / 42 

103.4 / 6 

111.0 / 13 

97.0 / 43 

97.3 / 45 

96.9 / 33 

104.0 1 3 

96.7 1 32 

100.5 / 15 

89.1 / 18 

109.6 / 29 

101.5 / 44 

102.9 / 14 

102.1 / 30 

102.4 / 38 

99.2 / 1 

100.0 

Tax 

Capacity 

$10 

1 

9 

7 

68 

9 

9 

2 

2 

3 1 

15 

2 

3 

27 

14 

7 

6 

9 

11 

3 

11 

15 

25 

10 

7 

13 

2 

4 

3 

3 

23 

4 

39 

16 

2 

29 

9 

8 

30 

2 

8 

2 

12 

42 

4 

2 

15 

12 

5 

13 

1 

$615 

Tax 

Revenue 

8.924 

0.598 

5.571 

4.781 

60.74 

6.219 

17.544 

1.159 

1.597 

32.729 

11.616 

0 

2.911 

34.008 

0 

11.251 

4.559 

6.385 

8.386 

4.789 

7.796 

31.056 

15.978 

9.397 

8.131 

11 .O3 

1.321 

2.68 

2.391 

4.571 

23.984 

3.082 

56.818 

27.687 

1.741 

10.78 

6.918 

11.191 

42.609 

0 

3.979 

1.138 

19.943 

36.321 

4.76 

1.706 

15.763 

13.889 

0 

14.265 

0.493 

$615 

Revenue 

Per 

Capita 

$2.22 

1.15 

1.75 

2.03 

2.30 

1.92 

5.53 

1.86 

2.55 

2.88 

1.94 

0.00 

2.90 

2.95 

0.00 

3.90 

1.86 

1.71 

1.87 

4.11 

1.78 

5.33 

1.76 

2.24 

3.11 

2.19 

1.60 

1.67 

2.55 

4.58 

3.17 

2.13 

3.20 

4.43 

2.54 

1.00 

2.10 

4.16 

3.59 

0.00 

1.19 

1.61 

4.19 

2.22 

2.89 

3.19 

2.76 

3.15 

0.00 

2.99 

0.97 

$2.58 

Tax 

Effort 

Index/Rank 

92.4 / 24 

50.8 / 44 

61.1 / 41 

70.7 1 34 

88.8 1 25 

69.4 / 36 

193.3 / 2 

66.0 / 38 

105.8 / 18 

104.1 / 21 

75.7 1 32 

0.0 / z 

107.2 1 17 

124.8 / 12 

0.0 I z 

150.9 1 7 

70.2 1 35 

72.4 / 33 

77.6 / 31 

151.9 / 6 

68.4 / 37 

208.8 / 1 

65.1 / 39 

96.9 / 23 

114.5 / 14 

82.9 1 28 

57.9 / 43 

62.7 / 40 

87.2 1 26 

158.0 / 5 

105.6 1 20 

80.4 / 29 

147.2 / 8 

171.2 / 3 

100.2 / 22 

37.5 / 47 

78.6 1 30 

145.6 / 9 

143.8 / 10 

0.0 1 z 

47.6 1 45 

60.0 / 42 

168.1 / 4 

85.7 / 27 

126.1 / 11 

113.0 / 16 

105.7 / 19 

118.8 / 13 

0.0 / z 

113.3 / 15 

37.9 / 46 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $3.92 per license. 

*Tax base is the number of motor vehicle operators licenses in thousands. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-1 7 

License Taxes: Corporations - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

37,521 

9,072 

51,671 

28,955 

382,623 

65,193 

58,007 

14,122 

10,400 

275,283 

79,736 

20,555 

13,878 

166,905 

69,143 

42,220 

36,980 

39,285 

72,782 

15,689 

70,626 

100,669 

118,977 

64,591 

23,965 

71,121 

14,545 

27,464 

17,988 

16,019 

173,949 

17,475 

377,022 

78,657 

9,120 

125,885 

51,854 

40,777 

131,036 

19,260 

39,019 

8,883 

46,547 

240,565 

23,878 

10,631 

75,861 

64,448 

18,181 

65,815 

9,241 

3,644,089 

Capacity 

Per 

Capita 

$7.09 

13.23 

12.32 

9.33 

11.03 

15.33 

13.88 

17.25 

12.62 

18.40 

10.14 

14.82 

10.49 

10.99 

9.55 

11.12 

11.47 

8.01 

12.34 

10.24 

12.22 

13.14 

9.95 

11.70 

6.97 

10.74 

13.38 

12.99 

14.60 

12.19 

17.48 

9.16 

16.11 

9.55 

10.12 

8.90 

11.93 

11.53 

8.40 

15.12 

8.86 

9.53 

7.43 

11.16 

11.03 

15.10 

10.10 

11.11 

7.13 

10.47 

13.79 

$11.60 

Tax 

Capaclty 

IndexJRank 

61.1 / 50 

114.1 / 13 

106.2 / 18 

80.4 / 42 

95.1 / 29 

132.2 / 5 

119.7 / 10 

148.7 / 3 

108.8 / 16 

158.7 / 1 

87.4 / 35 

127.8 / 8 

90.5 / 32 

94.8 / 30 

82.4 / 40 

95.9 / 26 

98.9 / 24 

69.1 / 47 

106.4 / 17 

88.3 / 34 

105.4 / 19 

113.3 / 14 

85.8 / 38 

100.9 / 22 

60.1 / 51 

92.7 / 31 

115.4 / 12 

112.0 / 15 

125.9 / 9 

105.2 / 20 

150.7 / 2 

79.0 / 43 

138.9 / 4 

82.4 / 39 

87.2 / 36 

76.8 / 44 

102.9 / 21 

99.4 / 23 

72.4 / 46 

130.4 1 6 

76.4 / 45 

82.2 / 41 

64.0 / 48 

96.3 / 25 

95.1 / 28 

130.2 1 7 

87.1 1 37 

95.8 / 27 

61.5 / 49 

90.3 / 33 

118.9 / 11 

100.0 

Tax 

Capacity 

$29 

7 

39 

22 

291 

50 

44 

11 

8 

209 

61 

16 

11 

127 

53 

32 

28 

30 

55 

12 

54 

76 

90 

49 

18 

54 

11 

21 

14 

12 

132 

13 

286 

60 

7 

96 

39 

3 1 

100 

15 

30 

7 

35 

183 

18 

8 

58 

49 

14 

50 

7 

$2,769 

Tax 

Revenue 

73.681 

0.981 

3.363 

3.931 

7.248 

2.436 

6.405 

121.057 

2.03 

18.086 

15.443 

1.051 

0.277 

55.896 

4.321 

17.541 

9.69 

20.202 

201.857 

0.966 

4.043 

9.593 

6.984 

2.064 

59.358 

41.532 

0.752 

4.507 

3.768 

3.648 

107.252 

6.979 

16.35 

86.671 

0.474 

300.161 

32.63 

3.913 

435.114 

2.583 

14.764 

1.049 

117.35 

910.427 

0 

0.509 

11.343 

7.349 

5 

3.378 

2.583 

$2,769 

Revenue 

Per 

Capita 

$18.32 

1.88 

1.06 

1.67 

0.27 

0.75 

2.02 

194.63 

3.24 

1.59 

2.58 

1.00 

0.28 

4.85 

0.79 

6.08 

3.96 

5.42 

45.05 

0.83 

0.92 

1.65 

0.77 

0.49 

22.72 

8.26 

0.91 

2.81 

4.03 

3.66 

14.18 

4.81 

0.92 

13.86 

0.69 

27.94 

9.88 

1.46 

36.71 

2.67 

4.41 

1.48 

24.64 

55.62 

0.00 

0.95 

1.99 

1.67 

2.58 

0.71 

5.07 

$11.60 

Tax 

Effort 

IndexJRank 

258.5 / 8 

14.2 / 32 

8.6 / 36 

17.9 / 27 

2.5 / 50 

4.9 / 47 

14.5 / 31 

1128.3 / 1 

25.7 / 23 

8.6 / 35 

25.5 / 24 

6.7 / 44 

2.6 / 49 

44.1 / 17 

8.2 / 37 

54.7 / 14 

34.5 / 20 

67.7 / 13 

365.0 / 4 

8.1 / 38 

7.5 / 40 

12.5 I 34 

7.7 1 39 

4.2 / 48 

326.0 / 6 

76.9 / 12 

6.8 / 42 

21.6 / 25 

27.6 / 22 

30.0 / 21 

81.2 / 11 

52.6 / 15 

5.7 / 46 

145.0 / 9 

6.8 / 41 

313.8 / 7 

82.8 / 10 

12.6 / 33 

437.1 / 3 

17.7 / 28 

49.8 / 16 

15.5 / 29 

331.8 / 5 

498.1 / 2 

0.0 / z 

6.3 / 45 

19.7 / 26 

15.0 / 30 

36.2 / 19 

6.8 I 43 

36.8 / 18 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $759.75 per corporation. 

*Tax base is the number of corporations that filed federal tax returns. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Table 3- 18 

License Taxes: Hunting and Fishing - I985 

Tax 

Base* 

1,224 

505 

942 

1,234 

4,007 

1,408 

387 

7 1 

0 

1,439 

1,556 

28 

971 

1,636 

1,315 

979 

709 

1,288 

1,403 

665 

585 

481 

3,272 

2,573 

1,088 

2,002 

848 

532 

322 

355 

489 

550 

2,632 

1,127 

371 

2,254 

1,230 

1,441 

3,378 

68 

859 

504 

1,949 

3,908 

877 

445 

1,481 

1,512 

892 

3,108 

487 

63,383 

Capacity 

Per 

Capita 

$2.83 

9.01 

2.75 

4.87 

1.41 

4.06 

1.13 

1.06 

0.00 

1.18 

2.42 

0.25 

8.99 

1.32 

2.22 

3.16 

2.69 

3.22 

2.91 

5.32 

1.24 

0.77 

3.35 

5.71 

3.87 

3.70 

9.55 

3.08 

3.20 

3.31 

0.60 

3.53 

1.38 

1.68 

5.03 

1.95 

3.47 

4.99 

2.65 

0.65 

2.39 

6.62 

3.81 

2.22 

4.96 

7.74 

2.42 

3.19 

4.28 

6.06 

8.90 

$2.47 

Tax 

Capacity 

IndedRank 

114.6 / 29 

364.8 / 2 

111.4 / 30 

197.0 1 13 

57.2 / 40 

164.2 / 15 

45.9 1 45 

43.0 / 46 

0.0 1 B 

47.7 / 44 

98.1 1 33 

10.1 / 50 

363.8 1 3 

53.4 / 42 

90.1 / 36 

127.9 / 26 

109.0 1 31 

130.2 / 23 

117.9 / 28 

215.3 / 9 

50.2 / 43 

31.1 / 47 

135.6 / 21 

231.1 / 8 

156.8 / 16 

149.9 / 18 

386.6 / 1 

124.7 / 27 

129.5 / 24 

133.8 / 22 

24.3 / 49 

143.0 / 19 

55.7 / 41 

67.9 / 39 

203.8 / 10 

79.0 / 38 

140.4 / 20 

202.0 / 11 

107.4 / 32 

26.5 1 48 

96.7 / 35 

267.9 / 6 

154.2 / 17 

89.9 / 37 

200.8 / 12 

313.1 / 5 

97.8 / 34 

129.1 / 25 

173.4 / 14 

245.2 / 7 

360.3 / 4 

100.0 

Tax 

Capacity 

$11 

5 

9 

11 

37 

13 

4 

1 

0 

13 

14 

0 

9 

15 

12 

9 

7 

12 

13 

6 

5 

4 

30 

24 

10 

19 

8 

5 

3 

3 

5 

5 

24 

10 

3 

21 

11 

13 

3 1 

1 

8 

5 

18 

36 

8 

4 

14 

14 

8 

29 

5 

$590 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $9.31 per license 

*Tax base is the number of hunting plus fishing licenses in thousands. 

B = Base is zero. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 

Tax 

Revenue 

$10 

10 

10 

12 

47 

30 

2 

1 

0 

10 

11 

0 

13 

14 

8 

6 

9 

9 

6 

8 

7 

4 

24 

22 

7 

13 

16 

7 

3 

4 

7 

9 

2 1 

11 

4 

15 

9 

17 

29 

1 

7 

7 

11 

22 

12 

3 

11 

19 

7 

29 

17 

$590 

Revenue 

Per 

Capita 

$2.52 

19.61 

3.17 

5.12 

1.78 

9.16 

0.77 

0.87 

0.00 

0.88 

1.89 

0.13 

12.77 

1.18 

1.39 

2.07 

3.52 

2.36 

1.38 

7.27 

1.48 

0.69 

2.63 

5.21 

2.62 

2.58 

18.98 

4.31 

3.66 

3.59 

0.87 

6.00 

1.18 

1.74 

6.05 

1.43 

2.87 

6.23 

2.43 

0.70 

2.01 

10.42 

2.27 

1.36 

7.21 

6.34 

1.87 

4.32 

3.84 

6.17 

33.65 

$2.47 

Tax 

Effort 

IndedRank 

88.9 / 30 

217.6 / 3 

115.2 / 18 

105.1 / 22 

125.6 / 14 

225.8 / 2 

68.3 / 43 

82.0 / 34 

0.0 / z 

74.6 / 39 

77.9 / 37 

51.0 1 49 

142.0 / 9 

89.3 / 29 

62.6 / 46 

65.5 / 45 

130.7 / 13 

73.5 / 40 

47.4 / 50 

136.7 / 11 

119.5 / 17 

90.3 / 27 

78.4 / 36 

91.3 1 26 

67.7 / 44 

69.8 / 42 

198.7 / 4 

140.0 / 10 

114.5 / 19 

108.5 / 20 

145.5 / 7 

169.7 / 5 

86.0 / 31 

104.0 / 23 

120.1 / 16 

73.1 / 41 

82.7 / 33 

124.9 / 15 

91.5 / 25 

106.8 / 21 

84.4 / 32 

157.4 / 6 

59.7 / 48 

61.1 / 47 

145.3 1 8 

82.0 / 35 

77.2 / 38 

135.5 / 12 

89.6 / 28 

101.9 / 24 

378.1 / 1 

100.0 
Table 3- 19 

License Taxes: Alcoholic Beverage Sales - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

2,649 

1,804 

4,471 

1,339 

26,746 

5,855 

5,804 

928 

966 

8,423 

3,901 

1,977 

957 

20,915 

6,145 

4,731 

2,403 

2,365 

10,434 

1,460 

4,999 

7,953 

13,415 

3,055 

1,269 

8,368 

1,829 

3,049 

2,310 

1,677 

11,066 

1,349 

27,770 

1,684 

1,740 

12,147 

857 

1,825 

19,590 

1,753 

3,103 

1,482 

1,625 

12,050 

461 

1,233 

2,135 

3,051 

1,481 

14,830 

928 

284,345 

Capacity 

Per 

Capita 

$0.54 

2.84 

1.15 

0.46 

0.83 

1.49 

1.50 

1.22 

1.26 

0.61 

0.53 

1.54 

0.78 

1.49 

0.92 

1.34 

0.80 

0.52 

1.91 

1.03 

0.93 

1.12 

1.21 

0.60 

0.40 

1.36 

1.81 

1.56 

2.02 

1.38 

1.20 

0.76 

1.28 

0.22 

2.08 

0.93 

0.21 

0.56 

1.35 

1 A8 

0.76 

1.71 

0.28 

0.60 

0.23 

1.89 

0.31 

0.57 

0.63 

2.55 

1.49 

$0.98 

Tax 

Capacity 

IndexIRank 

55.3 1 42 

290.6 / 1 

117.8 / 25 

47.6 / 45 

85.2 / 31 

152.1 / 14 

153.5 / 11 

125.2 / 22 

129.5 / 21 

62.2 / 37 

54.8 / 43 

157.4 / 10 

80.0 / 33 

152.2 / 13 

93.8 / 30 

137.7 / 19 

82.3 / 32 

53.3 / 44 

195.5 / 5 

105.3 / 27 

95.6 / 28 

114.7 / 26 

123.9 / 23 

61.2 / 39 

40.8 / 46 

139.7 / 17 

185.9 / 7 

159.4 / 9 

207.2 / 4 

141.0 / 16 

122.9 / 24 

78.1 / 34 

131.1 / 20 

22.6 / 50 

213.3 / 3 

94.9 / 29 

21.8 / 51 

57.0 / 41 

138.8 1 18 

152.0 / 15 

77.8 1 35 

175.7 / 8 

28.7 / 48 

61.8 1 38 

23.5 / 49 

193.4 1 6 

31.4 / 47 

58.1 / 40 

64.2 / 36 

260.8 / 2 

153.1 / 12 

100.0 

Tax 

Capacity 

$2 

1 

4 

1 

22 

5 

5 

1 

1 

7 

3 

2 

1 

17 

5 

4 

2 

2 

9 

1 

4 

7 

11 

3 

1 

7 

1 

2 

2 

1 

9 

1 

23 

1 

1 

10 

1 

1 

16 

1 

3 

1 

1 

10 

0 

1 

2 

2 

1 

12 

1 

$233 

Tax 

Revenue 

2.684 

1.702 

2.289 

1 

29.697 

2.377 

6.419 

0.578 

1.809 

17.383 

1.699 

0 

0.989 

1.899 

8.645 

4.424 

1.227 

1.866 

2.309 

1.65 

0.338 

0.564 

20.017 

0.494 

2.544 

2.208 

1.411 

0.248 

0.023 

2.063 

3.975 

0.807 

31.788 

2.255 

0.245 

15.817 

1.761 

1.303 

11.468 

0.155 

1.446 

0.208 

1.424 

25.905 

0.283 

0.526 

3.527 

7.057 

2.298 

0.213 

0 

$233 

Revenue 

Per 

Capita 

$0.67 

3.27 

0.72 

0.42 

1.13 

0.74 

2.02 

0.93 

2.89 

1.53 

0.28 

0.00 

0.98 

0.16 

1.57 

1.53 

0.50 

0.50 

0.52 

1.42 

0.08 

0.10 

2.20 

0.12 

0.97 

0.44 

1.71 

0.15 

0.02 

2-07 

0.53 

0.56 

1.79 

0.36 

0.36 

1.47 

0.53 

0.48 

0.97 

0.16 

0.43 

0.29 

0.30 

1.58 

0.17 

0.98 

0.62 

1.60 

1.19 

0.04 

0.00 

$0.98 

Tax 

Effort 

IndexJRank 

123.6 / 19 

115.2 / 20 

62.5 / 31 

91.2 / 25 

135.5 / 16 

49.5 / 36 

135.0 / 17 

76.0 / 27 

228.6 / 6 

251.8 / 3 

53.2 / 34 

0.0 / z 

126.1 / 18 

11.1 / 43 

171.7 / 10 

114.1 / 21 

62.3 / 32 

96.3 / 23 

27.0 / 39 

137.9 / 15 

8.3 / 47 

8.7 / 46 

182.1 / 9 

19.7 / 40 

244.7 / 5 

32.2 / 38 

94.1 / 24 

9.9 / 45 

1.2 / 49 

150.2 / 13 

43.8 / 37 

73.0 / 29 

139.7 / 14 

163.4 / 11 

17.2 / 41 

158.9 / 12 

250.9 / 4 

87.1 / 26 

71.4 / 30 

10.8 / 44 

56.9 / 33 

17.1 / 42 

106.9 / 22 

262.3 I 2 

74.9 / 28 

52.1 I 35 

201.6 / 7 

282.3 / 1 

189.4 / 8 

1.8 / 48 

0.0 1 z 

100.0 

N0TE:AU per capita amounts are in dollars; tot. amounts are in millions of dollars 

Representative Rate = $819.49 per license. 

*Tax base is the number of licenses for the sale of distilled spirits. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-20 

License Taxes: Motor Vehicle Registrations, Total - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

Tax 

Capacity 

IndexJRank 

125.0 1 11 

106.9 / 22 

105.0 / 25 

92.8 1 40 

' 98.7 / 34 

124.7 1 12 

88.5 1 43 

101.6 / 32 

56.3 / 51 

116.3 / 16 

111.6 / 19 

75.8 / 49 

134.2 / 6 

92.0 / 42 

105.1 / 24 

137.9 1 4 

134.0 / 7 

106.2 / 23 

102.1 / 31 

103.2 / 28 

97.7 / 36 

79.5 / 47 

99.8 / 33 

111.6 / 18 

93.6 / 38 

103.3 1 27 

127.9 / 9 

121.3 / 14 

109.2 / 20 

126.5 / 10 

76.2 / 48 

128.3 / 8 

62.9 / 50 

102.5 / 30 

160.0 1 2 

98.3 / 35 

136.5 / 5 

121.5 / 13 

80.5 / 45 

80.2 / 46 

93.4 / 39 

147.2 / 3 

107.7 / 21 

113.8 / 17 

102.9 / 29 

104.6 / 26 

94.3 / 37 

119.5 / 15 

87.9 / 44 

92.5 / 41 

164.0 1 1 

100.0 

Tax 

Capacity 

$159 

18 

106 

69 

825 

128 

89 

20 

11 

419 

211 

25 

43 

336 

183 

126 

104 

125 

145 

38 

136 

147 

287 

148 

77 

165 

33 

62 

32 

40 

183 

59 

354 

203 

35 

335 

143 

103 

302 

25 

99 

33 

162 

590 

54 

18 

171 

167 

54 

140 

26 

$7,564 

Tax 

Revenue 

$74 

15 

149 

71 

553 

84 

103 

35 

18 

327 

65 

29 

32 

629 

115 

142 

77 

105 

63 

43 

93 

117 

298 

237 

54 

171 

42 

61 

37 

36 

313 

39 

518 

192 

32 

348 

190 

142 

377 

24 

48 

22 

151 

625 

32 

28 

248 

137 

63 

123 

38 

$7,564 

Revenue 

Per 

Capita 

$18.33 

29.33 

46.80 

30.04 

20.97 

26.02 

32.31 

55.73 

28.87 

28.81 

10.87 

27.33 

31.40 

54.50 

21.00 

49.31 

31.50 

28.21 

14.03 

36.73 

21.23 

20.07 

32.80 

56.64 

20.75 

33.93 

50.56 

38.10 

39.11 

35.91 

41.34 

27.23 

29.11 

30.69 

46.83 

32.39 

57.53 

52.84 

31.80 

24.35 

14.45 

30.76 

31.74 

38.17 

19.34 

52.33 

43.52 

30.98 

32.59 

25.74 

75.50 

$31.68 

Tax 

Effort 

Index/Rank 

46.3 / 49 

86.6 / 33 

140.7 / 10 

102.1 / 25 

67.0 / 42 

65.9 / 45 

115.2 / 16 

173.1 1 2 

162.0 / 4 

78.2 / 37 

30.8 / 51 

113.7 / 17 

73.8 / 39 

186.9 / 1 

63.1 / 46 

112.9 / 19 

74.2 / 38 

83.8 / 34 

43.4 / 50 

112.4 / 20 

68.6 / 41 

79.7 / 36 

103.7 / 23 

160.1 / 5 

70.0 / 40 

103.7 / 24 

124.8 / 13 

99.1 / 26 

113.1 / 18 

89.6 / 31 

171.2 / 3 

67.0 / 43 

146.1 / 7 

94.5 / 28 

92.4 / 30 

104.0 / 22 

133.0 / 12 

137.3 / 11 

124.7 / 14 

95.8 / 27 

48.9 / 48 

66.0 / 44 

93.0 / 29 

105.9 / 21 

59.3 / 47 

158.0 / 6 

145.6 / 8 

81.8 / 35 

117.1 / 15 

87.8 / 32 

145.3 / 9 

100.0 

N0TE:AlI per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for automobile and truck registrations. 

Source: ACIR staff estimates. 
Table 3-21 

License Taxes: Motor Vehicle Registrations, Automobile - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

2,331 

217 

1,569 

895 

14,584 

2,008 

2,297 

365 

303 

7,769 

3,347 

565 

528 

6,039 

2,973 

1,929 

1,467 

1,755 

2,045 

616 

2,711 

3,256 

5,317 

2,614 

1,321 

2,616 

389 

828 

503 

81 1 

4,366 

735 

7,841 

3,227 

378 

6,722 

1,846 

1,543 

5,854 

516 

1,676 

402 

2,921 

8,431 

732 

299 

3,616 

2,468 

800 

2,447 

283 

131,067 

Capacity 

Per 

Capita 

$19.73 

14.18 

16.75 

12.92 

18.83 

21.15 

24.63 

19.97 

16.50 

23.27 

19.06 

18.24 

17.87 

17.82 

18.40 

22.76 

20.38 

16.03 

15.54 

18.01 

21.01 

19.03 

19.91 

21.22 

17.21 

17.70 

16.04 

17.54 

18.28 

27.65 

19.65 

17.26 

15.01 

17.56 

18.78 

21.30 

19.03 

19.55 

16.81 

18.15 

17.04 

19.33 

20.88 

17.53 

15.14 

19.05 

21.57 

19.06 

14.06 

17.44 

18.90 

$18.69 

Tax 

Capacity 

IndexJRank 

105.6 / 14 

75.9 / 49 

89.5 / 42 

69.1 / 51 

100.8 / 24 

113.2 / 8 

131.8 / 2 

106.9 / 12 

88.3 / 43 

124.5 / 3 

102.0 / 18 

97.6 / 28 

95.6 / 31 

95.4 / 32 

98.5 / 26 

121.8 / 4 

109.1 / 11 

85.8 / 45 

83.1 / 46 

96.4 / 30 

112.4 / 9 

101.9 / 21 

106.6 / 13 

113.5 / 7 

92.1 / 39 

94.7 / 33 

85.8 / 44 

93.9 / 35 

97.8 / 27 

148.0 / 1 

105.2 / 15 

92.4 / 38 

80.3 / 48 

94.0 / 34 

100.5 / 25 

114.0 / 6 

101.9 / 22 

104.6 / 16 

90.0 / 41 

97.1 / 29 

91.2 / 40 

103.4 / 17 

111.7 / 10 

93.8 1 36 

81.0 / 47 

102.0 / 20 

115.4 / 5 

102.0 / 19 

75.3 / 50 

93.3 / 37 

101.1 / 23 

100.0 

Tax 

Capacity 

$79 

7 

53 

30 

496 

68 

78 

12 

10 

264 

114 

19 

18 

206 

101 

66 

50 

60 

70 

2 1 

92 

rii 

181 

89 

45 

89 

13 

28 

17 

28 

149 

25 

267 

110 

13 

229 

63 

53 

199 

18 

57 

14 

99 

287 

25 

10 

123 

84 

27 

83 

10 

$4,461 

Tax 

Revenue 

$31 

7 

67 

35 

390 

47 

76 

20 

17 

220 

28 

23 

17 

349 

40 

85 

28 

43 

16 

20 

67 

7 1 

1 84 

165 

22 

84 

13 

2 1 

25 

26 

221 

26 

402 

89 

13 

212 

142 

71 

222 

16 

20 

9 

65 

326 

12 

16 

159 

86 

36 

62. 

17 

$4,461 

Revenue 

Per 

Capita 

$7.64 

14.18 

21.11 

15.05 

14.79 

14.53 

23.97 

31.96 

26.94 

19.38 

4.76 

22.19 

16.85 

30.27 

7.20 

29.52 

11.30 

11.57 

3.58 

17.22 

15.17 

12.25 

20.20 

39.35 

8.42 

16.64 

15.25 

13.39 

27.23 

25.81 

29.24 

17.75 

22.63 

14.28 

19.67 

19.72 

43.04 

26.47 

18.73 

16.63 

6.06 

12.09 

13.70 

19.94 

7.43 

29.44 

27.86 

19.43 

18.78 

12.96 

32.66 

$18.69 

Tax 

Effort 

IndexIRank 

38.7 / 48 

100.0 / 24 

126.0 / 15 

116.5 / 17 

78.5 / 35 

68.7 / 40 

97.3 / 25 

160.1 / 6 

163.3 1 5 

83.3 / 33 

25.0 / 50 

121.7 / 16 

94.3 / 28 

169.9 / 4 

39.1 / 47 

129.7 / 13 

55.5 / 44 

72.2 / 39 

23.1 / 51 

95.6 / 26 

72.2 / 38 

64.4 / 42 

101.4 / 23 

185.5 / 2 

48.9 / 46 

94.0 / 29 

95.1 / 27 

76.3 / 36 

149.0 / 9 

93.4 / 30 

148.8 / 10 

102.8 / 21 

150.8 / 8 

81.3 / 34 

104.7 / 20 

92.6 / 31 

226.1 / 1 

135.4 / 11 

111.4 / 19 

91.6 I 32 

35.5 / 49 

62.6 I 43 

65.6 / 41 

113.8 I 18 

49.1 I 45 

154.5 / 7 

129.2 I 14 

102.0 / 22 

133.6 / 12 

74.3 / 37 

172.8 / 3 

100.0 

N0TE:AlI per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $34.04 per registration. 

*Tax base is automobile registrations in thousands. 

Source: ACIR staff estimates. 
Table 3-22 

License Taxes: Motor Vehicle Registrations, Trucks - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

964 

124 

635 

470 

3,961 

715 

131 

92 

10 

1,864 

1,175 

74 

299 

1,578 

988 

729 

653 

793 

909 

206 

527 

431 

1,285 

716 

392 

912 

244 

405 

184 

150 

410 

409 

1,055 

1,127 

264 

1,277 

964 

614 

1,245 

85 

507 

233 

761 

3,658 

347 

9 1 

572 

1,000 

322 

684 

203 

37,445 

Capacity 

Per 

Capita 

$19.86 

19.69 

16.51 

16.49 

12.45 

18.35 

3.42 

12.22 

1.33 

13.59 

16.29 

5.79 

24.67 

11.33 

14.89 

20.93 

22.09 

17.63 

16.81 

14.67 

9.94 

6.14 

11.71 

14.16 

12.43 

15.02 

24.49 

20.89 

16.32 

12.45 

4.49 

23.39 

4.92 

14.93 

31.91 

9.85 

24.20 

18.94 

8.70 

7.25 

12.55 

27.30 

13.24 

18.52 

17.47 

14.08 

8.31 

18.80 

13.78 

11.87 

33.05 

$13.00 

Tax 

Capacity 

IndexIRank 

152.8 / 11 

151.5 / 12 

127.0 / 20 

126.9 / 21 

95.8 / 34 

141.2 / 16 

26.4 / 50 

94.0 / 37 

10.2 / 51 

104.6 / 31 

125.4 / 23 

44.5 / 47 

189.8 / 4 

87.2 / 40 

114.6 / 26 

161.1 / 9 

170.0 / 8 

135.7 / 17 

129.3 / 19 

112.9 / 27 

76.5 / 41 

47.2 / 46 

90.1 / 39 

108.9 / 28 

95.7 / 36 

115.6 / 24 

188.4 / 5 

160.7 / 10 

125.6 / 22 

95.8 / 35 

34.6 / 49 

180.0 / 7 

37.8 / 48 

114.9 / 25 

245.6 / 2 

75.8 / 42 

186.2 / 6 

145.7 / 13 

67.0 / 43 

55.8 / 45 

96.5 / 33 

210.1 / 3 

101.9 / 32 

142.5 / 15 

134.4 / 18 

108.3 / 29 

64.0 / 44 

144.6 1 14 

106.0 / 30 

91.3 / 38 

254.3 / 1 

100.0 

Tax 

Capacity 

$80 

10 

53 

39 

328 

59 

11 

8 

1 

154 

97 

6 

25 

131 

82 

60 

54 

66 

75 

17 

44 

36 

106 

59 

32 

76 

20 

34 

15 

12 

34 

34 

87 

93 

22 

106 

80 

5 1 

103 

7 

42 

19 

63 

303 

29 

8 

47 

83 

27 

57 

17 

$3,103 

Tax 

Revenue 

$43 

8 

82 

35 

163 

37 

26 

15 

1 

107 

37 

5 

15 

279 

76 

57 

49 

62 

47 

23 

27 

45 

115 

72 

32 

87 

29 

40 

11 

10 

92 

14 

115 

103 

19 

136 

48 

71 

155 

7 

28 

13 

86 

298 

20 

12 

89 

51 

27 

61 

22 

$3,103 

Revenue 

Per 

Capita 

$10.69 

15.15 

25.68 

14.99 

6.18 

11.49 

8.35 

23.77 

1.93 

9.43 

6.12 

5.13 

14.55 

24.22 

13.80 

19.79 

20.20 

16.64 

10.44 

19.51 

6.06 

7.81 

12.60 

17.29 

12.33 

17.29 

35.31 

24.72 

11.88 

10.10 

12.10 

9.48 

6.48 

16.42 

27.16 

12.67 

14.49 

26.37 

13.07 

7.72 

8.40 

18.67 

18.03 

18.22 

11.91 

22.89 

15.66 

11.55 

13.81 

12.78 

42.83 

$13.00 

Tax 

Effort 

Index/Rank 

53.8 / 48 

76.9 / 36 

155.6 / 7 

90.9 / 32 

49.7 / 49 

62.6 / 42 

243.7 / 2 

194.5 / 4 

145.5 / 9 

69.4 / 38 

37.5 / 51 

88.7 / 33 

59.0 / 47 

213.7 / 3 

92.7 / 30 

94.6 / 28 

91.4 / 31 

94.4 / 29 

62.1 / 43 

133.0 / 13 

61.0 / 45 

127.3 / 17 

107.6 / 23 

122.1 / 18 

99.2 / 26 

115.1 / 20 

144.2 / 10 

118.3 / 19 

72.8 / 37 

81.2 / 35 

269.4 / 1 

40.5 / 50 

131.9 / 14 

110.0 / 21 

85.1 / 34 

128.7 / 16 

59.9 / 46 

139.2 / 11 

150.2 / 8 

106.4 / 24 

66.9 / 41 

68.4 / 39 

136.2 / 12 

98.4 / 27 

68.2 / 40 

162.6 / 6 

188.3 / 5 

61.4 / 44 

100.2 / 25 

107.7 / 22 

129.6 / 15 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = $82.86 per registration. 

*Tax base is truck registrations in thousands. 

Source: ACIR staff estimates. 
Table 3-23 

Personal Income Taxes - I985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

Nort ! Carolina 

Norti1 Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

4,167 

1,219 

4,289 

2,195 

46,372 

5,122 

7,585 

1,110 

1,389 

18,081 

8,121 

1,443 

945 

19,346 

7,058 

3,192 

3,430 

3,816 

5,113 

1,313 

8,557 

11,604 

14,686 

6,240 

2,071 

7,221 

811 

1,971 

1,653 

1,665 

16,291 

1,576 

35,161 

7,458 

751 

15,209 

4,173 

3,369 

17,027 

1,377 

3,477 

619 

5,562 

25,821 

1,667 

655 

9,285 

6,432 

1,811 

6,235 

694 

366,435 

Capaclty 

Per 

Capita 

$198.24 

447.53 

257.45 

177.99 

336.46 

303.26 

457.14 

341.36 

424.57 

304.30 

259.96 

261.84 

179.89 

320.83 

245.54 

211.72 

267.80 

195.90 

218.28 

215.78 

372.70 

381.29 

309.14 

284.69 

151.63 

274.69 

187.89 

234.79 

337.82 

319.17 

412.11 

207.90 

378.23 

228.09 

209.78 

270.79 

241.82 

239.88 

274.80 

272.03 

198.70 

167.23 

223.44 

301.73 

193.80 

234.11 

311.28 

279.07 

178.91 

249.79 

260.65 

$293.61 

Tax 

Capacity 

IndeNRank 

67.5 / 43 

152.4 / 2 

87.7 1 28 

60.6 / 49 

114.6 / 10 

103.3 / 16 

155.7 / 1 

116.3 / 8 

144.6 / 3 

103.6 / 15 

88.5 / 27 

89.2 / 25 

61.3 / 47 

109.3 / 11 

83.6 / 30 

72.1 / 39 

91.2 / 24 

66.7 / 44 

74.3 / 37 

73.5 / 38 

126.9 / 7 

129.9 / 5 

105.3 / 14 

97.0 / 18 

51.6 / 51 

93.6 / 21 

64.0 / 46 

80.0 / 33 

115.1 / 9 

108.7 1 12 

140.4 / 4 

70.8 / 41 

128.8 / 6 

77.7 / 35 

71.4 / 40 

92.2 / 23 

82.4 / 31 

81.7 / 32 

93.6 / 20 

92.7 / 22 

67.7 / 42 

57.0 / 50 

76.1 / 36 

102.8 / 17 

66.0 / 45 

79.7 I 34 

106.0 / 13 

95.0 / 19 

60.9 / 48 

85.1 / 29 

88.8 / 26 

100.0 

Tax 

Capacity 

$797 

233 

820 

420 

8,871 

980 

1,451 

212 

266 

3,459 

1,554 

276 

181 

3,701 

1,350 

61 1 

656 

730 

978 

251 

1,637 

2,220 

2,809 

1,194 

396 

1,381 

155 

377 

316 

319 

3,116 

301 

6,726 

1,427 

144 

2,909 

798 

645 

3,257 

263 

665 

118 

1,064 

4,939 

319 

125 

1,776 

1,230 

346 

1,193 

133 

$70,097 

Tax 

Revenue 

$751 

1 

609 

471 

10,762 

908 

292 

383 

418 

0 

1,718 

429 

258 

2,601 

1,369 

825 

603 

980 

527 

297 

2,593 

3,159 

3,393 

2,233 

259 

1,206 

181 

319 

0 

24 

1,937 

85 

12,160 

2,023 

76 

3,965 

727 

1,311 

4,011 

282 

85 1 

0 

62 

0 

43 1 

145 

1,948 

0 

503 

2,009 

0 

$70,097 

Revenue 

Per 

Capita 

$186.85 

2.43 

190.97 

199.85 

408.20 

280.91 

91.88 

615.58 

666.95 

0.00 

287.54 

407.40 

256.95 

225.48 

248.96 

285.91 

246.31 

263.10 

117.54 

255.35 

590.40 

542.59 

373.34 

532.67 

99.29 

239.72 

219.20 

198.54 

0.00 

24.53 

256.15 

58.61 

683.80 

323.50 

111.21 

369.08 

220.27 

487.80 

338.39 

291.06 

254.20 

0.00 

12.98 

0.00 

261.83 

271.31 

341.43 

0.00 

259.91 

420.76 

0.00 

$293.61 

Tax 

Effort 

IndeNRank 

94.3 / 29 

0.5 / 45 

74.2 / 35 

112.3 / 24 

121.3 / 19 

92.6 / 30 

20.1 / 42 

180.3 / 4 

157.1 / 7 

0.0 / Z 

110.6 / 25 

155.6 / 8 

142.8 / 10 

70.3 / 36 

101.4 / 28 

135.0 / 15 

92.0 / 31 

134.3 / 16 

53.8 / 39 

118.3 / 21 

158.4 / 6 

142.3 / 11 

120.8 / 20 

187.1 / 2 

65.5 / 37 

87.3 / 33 

116.7 / 22 

84.6 / 34 

0.0 / z 

7.7 / 43 

62.2 / 38 

28.2 / 41 

180.8 / 3 

141.8 / 12 

53.0 / 40 

136.3 / 13 

91.1 / 32 

203.4 / 1 

123.1 / 18 

107.0 / 27 

127.9 / 17 

0.0 / Z 

5.8 / 44 

0.0 / Z 

135.1 / 14 

115.9 / 23 

109.7 / 26 

0.0 I z 

145.3 I 9 

168.4 / 5 

0.0 / z 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 19.1%. 

*Tax base is federal income tax liability adjusted for deductibility in millions of dollars. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 

Table 3-25 

All Property Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

$307.71 

482.79 

517.17 

299.74 

613.44 

615.53 

601.63 

608.24 

492.91 

434.12 

368.82 

685.48 

381.68 

399.14 

346.12 

386.21 

404.84 

310.11 

395.58 

414.76 

427.20 

480.82 

366.99 

454.85 

298.30 

335.76 

375.28 

439.94 

439.53 

492.10 

513.90 

360.11 

406.32 

382.31 

383.81 

386.31 

406.41 

461.73 

390.80 

359.20 

320.90 

375.94 

337.10 

440.27 

360.69 

439.10 

427.41 

538.62 

317.31 

409.65 

661.71 

$435.11 

Tax 

Capacity 

IndexlRank 

70.7 / 49 

111.0 / 12 

118.9 / 8 

68.9 / 50 

141.0 / 4 

141.5 / 3 

138.3 / 6 

139.8 / 5 

113.3 / 10 

99.8 / 20 

84.8 / 38 

157.5 / 1 

87.7 / 35 

91.7 / 28 

79.5 / 43 

88.8 / 32 

93.0 / 27 

71.3 / 48 

90.9 / 29 

95.3 / 23 

98.2 / 22 

110.5 / 13 

84.3 / 39 

104.5 / 15 

68.6 / 51 

77.2 / 45 

86.2 / 37 

101.1 / 17 

101.0 / 18 

113.1 / 11 

118.1 / 9 

82.8 / 41 

93.4 / 26 

87.9 / 34 

88.2 / 33 

88.8 / 31 

93.4 / 25 

106.1 / 14 

89.8 / 30 

82.6 / 42 

73.8 / 46 

86.4 / 36 

77.5 I 44 

101.2 / 16 

82.9 / 40 

100.9 / 19 

98.2 / 21 

123.8 / 7 

72.9 / 47 

94.1 / 24 

152.1 / 2 

100.0 

Tax 

Capacity 

$1,237 

252 

1,648 

707 

16,173 

1,989 

1,910 

378 

309 

4,934 

2,204 

722 

384 

4,604 

1,903 

1,114 

992 

1,155 

1,773 

483 

1,876 

2,799 

3,335 

1,907 

779 

1,689 

310 

707 

411 

49 1 

3,886 

522 

7,226 

2,391 

263 

4,151 

1,342 

1,241 

4,632 

348 

1,074 

266 

1,605 

7,207 

593 

235 

2,439 

2,375 

614 

1,956 

337 

$103,878 

Tax 

Revenue 

$466 

558 

1,167 

409 

11,094 

1,601 

2,231 

127 

455 

4,301 

1,759 

309 

280 

6,095 

2,072 

1,525 

1,221 

679 

791 

549 

1,786 

3,305 

5,632 

2,118 

547 

1,211 

520 

882 

296 

691 

5,424 

218 

12,238 

1,542 

233 

4,026 

745 

1,662 

4,346 

569 

802 

324 

1,038 

7,623 

569 

283 

2,089 

1,812 

385 

2,714 

561 

$103,878 

Revenue 

Per 

Capita 

$115.91 

1,071.61 

366.31 

173.46 

420.79 

495.50 

702.93 

203.74 

726.99 

378.39 

294.40 

293.21 

278.34 

528.40 

376.81 

528.77 

498.24 

182.35 

176.56 

471.59 

406.54 

567.62 

619.72 

505.04 

209.25 

240.88 

629.06 

549.17 

315.94 

692.72 

717.22 

150.00 

688.20 

246.45 

339.82 

374.72 

225.65 

618.43 

366.66 

587.90 

239.51 

458.20 

218.04 

465.69 

345.81 

529.71 

366.10 

410.87 

198.86 

568.36 

1,101.87 

$435.11 

Tax 

Effort 

IndexlRank 

37.7 1 50 

222.0 / 1 

70.8 / 38 

57.9 / 45 

68.6 / 40 

80.5 / 31 

116.8 / 19 

33.5 / 51 

147.5 / 7 

87.2 / 29 

79.8 / 32 

42.8 / 48 

72.9 / 35 

132.4 / 13 

108.9 / 22 

136.9 / 11 

123.1 / 15 

58.8 / 44 

44.6 / 47 

113.7 / 20 

95.2 / 26 

118.1 / 18 

168.9 / 3 

111.0 / 21 

70.1 / 39 

71.7 / 37 

167.6 / 4 

124.8 / 14 

71.9 / 36 

140.8 / 8 

139.6 / 9 

41.7 / 49 

169.4 / 2 

64.5 / 42 

88.5 / 28 

97.0 / 24 

55.5 / 46 

133.9 / 12 

93.8 / 27 

163.7 / 6 

74.6 / 34 

121.9 / 16 

64.7 I 41 

105.8 1 23 

95.9 / 25 

120.6 / 17 

85.7 / 30 

76.3 / 33 

62.7 / 43 

138.7 I 10 

166.5 / 5 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax base can be reported; see tables for particular property taxes. 

Source: ACIR staff estimates. 
Table 3-26 

Property Taxes: Residential and Farm - 1985 

State 

RESIDENTIAL 

Capacity Tax 

Tax Per Capacity Tax 

Base* Ca~ita IndexJRank Ca~aclty 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total $3,968;640 

FARM 

Capacity Tax 

Tax Per Capacity Tax 

Base* Ca~lta IndexIRank Ca~acity 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rates = 1.59% and 0.64%. 

*Tax bases are the estimated market values of residential and farm properties in millions of dollars. 

Source: ACIR staff estimates. 
Table 3-27 

Property Taxes: Commercial/lndustriaI and Public Utilities - 1985 

State 

COMMERClAL/lNDUSTRlAL PUBLIC UTILITIES 

Capacity Tax Capacity Tax 

Tax Per Capacity Tax Tax Per Capacity Tax 

Base* Ca~ita IndexIRank Ca~acity Base* Ca~ita Index/Rank Ca~acity 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total $2,193,999 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rates = 1.26% and 1.43%. 

*Tax bases are the net book values of commerciallindustrial and public properties in millions of dollars. 

Source: ACIR staff estimates. 
Table 3-28 

Estate And Gift Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$69.9 

4.0 

68.9 

24.1 

1,044.0 

74.0 

153.8 

45.8 

19.2 

449.7 

118.1 

32.0 

9.4 

330.4 

87.4 

82.8 

55.7 

64.4 

79.6 

22.7 

117.6 

252.5 

146.3 

60.9 

33.6 

153.4 

15.6 

36.3 

35.6 

19.2 

217.1 

26.2 

1,056.0 

135.3 

10.9 

227.6 

92.0 

59.1 

258.5 

29.6 

43.4 

6.7 

82.7 

528.8 

28.8 

8.8 

133.5 

90.0 

21.5 

69.6 

19.1 

$6,852.0 

Capacity 

Per 

Capita 

$5.97 

2.65 

7.42 

3.50 

13.59 

7.86 

16.63 

25.28 

10.52 

13.58 

6.78 

10.42 

3.20 

9.83 

5.46 

9.86 

7.80 

5.93 

6.10 

6.68 

9.19 

14.89 

5.52 

4.98 

4.42 

10.47 

6.47 

7.76 

13.06 

6.59 

9.85 

6.21 

20.38 

7.43 

5.44 

7.27 

9.56 

7.56 

7.49 

10.49 

4.45 

3.24 

5.96 

11.09 

6.01 

5.67 

8.03 

7.01 

3.81 

5.00 

12.89 

$9.85 

Tax 

Capacity 

IndexlRank 

60.6 / 36 

26.9 / 51 

75.3 1 26 

35.5 / 48 

138.0 / 5 

79.8 / 20 

168.8 / 3 

256.6 / 1 

106.8 / 10 

137.8 / 6 

68.8 / 29 

105.8 / 13 

32.4 1 50 

99.8 1 16 

55.4 / 41 

100.1 / 14 

79.2 / 21 

60.2 / 38 

61.9 1 34 

67.8 / 30 

93.3 1 18 

151.1 / 4 

56.1 / 40 

50.6 / 44 

44.9 1 46 

106.3 / 12 

65.7 1 32 

78.8 / 22 

132.5 / 7 

66.9 / 31 

100.0 / 15 

63.0 / 33 

206.9 1 2 

75.4 1 25 

55.3 / 42 

73.8 1 27 

97.1 / 17 

76.7 / 23 

76.0 / 24 

106.5 / 11 

45.2 / 45 

32.9 / 49 

60.5 1 37 

112.5 / 9 

61.0 1 35 

57.6 / 39 

81.5 / 19 

71.1 / 28 

38.7 / 47 

50.8 1 43 

130.8 / 8 

100.0 

Tax 

Capacity 

$24 

1 

24 

8 

358 

25 

53 

16 

7 

154 

41 

11 

3 

113 

30 

28 

19 

22 

27 

8 

40 

87 

50 

21 

12 

53 

5 

12 

12 

7 

75 

9 

362 

46 

4 

78 

32 

20 

89 

10 

15 

2 

28 

181 

10 

3 

46 

3 1 

7 

24 

7 

$2,352 

Tax 

Revenue 

$10 

1 

15 

5 

103 

14 

123 

14 

24 

101 

15 

12 

2 

61 

44 

58 

30 

5 1 

34 

12 

36 

154 

63 

18 

11 

2 1 

8 

5 

0 

12 

194 

4 

241 

77 

3 

34 

38 

29 

278 

14 

24 

10 

34 

151 

5 

2 

28 

20 

20 

80 

9 

$2,352 

Revenue 

Per 

Capita 

$2.41 

0.99 

4.63 

2.22 

3.92 

4.34 

38.79 

21.90 

38.93 

8.91 

2.55 

11.63 

1.89 

5.30 

8.07 

20.20 

12.18 

13.68 

7.62 

9.98 

8.30 

26.38 

6.90 

4.29 

4.09 

4.25 

9.27 

3.10 

0.00 

11.91 

25.71 

2.70 

13.56 

12.25 

3.88 

3.21 

11.53 

10.82 

23.42 

14.23 

7.15 

14.26 

7.09 

9.19 

2.91 

3.17 

4.93 

4.57 

10.41 

16.85 

18.48 

$9.85 

Tax 

Effort 

IndexIRank 

40.3 / 46 

37.5 / 49 

62.4 / 36 

63.5 / 35 

28.9 / 50 

55.2 / 40 

233.2 / 7 

86.6 / 28 

370.1 / 2 

65.6 / 33 

37.6 / 48 

111.6 / 25 

59.2 / 38 

53.9 / 41 

147.9 / 16 

204.9 / 9 

156.1 / 14 

230.6 / 8 

124.9 / 21 

149.3 / 15 

90.3 / 27 

177.2 / 11 

124.9 / 22 

86.1 / 29 

92.5 / 26 

40.6 / 45 

143.2 / 19 

40.0 / 47 

0.0 / z 

180.7 / 10 

260.9 / 6 

43.4 / 44 

66.5 / 32 

165.0 / 12 

71.3 / 31 

44.1 / 43 

120.5 / 23 

143.2 / 18 

312.8 / 4 

135.6 / 20 

160.7 / 13 

439.7 / 1 

119.0 / 24 

82.9 / 30 

48.4 / 42 

55.9 / 39 

61.4 / 37 

65.2 / 34 

272.8 / 5 

336.6 / 3 

143.4 / 17 

100.0 

N0TE:All per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 34.3%. 

*Tax base is federal income tax liability adjusted for deductibility in millions of dollars. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-29 

Total Severance Taxes - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Tax Per 

Base* Capita 

$24.16 

1,847.35 

5.85 

24.96 

25.31 

30.26 

0.25 

0.05 

0.00 

3.13 

1.56 

0.53 

3.82 

9.20 

6.52 

1.02 

68.05 

37.98 

137.83 

0.35 

1.06 

0.19 

9.78 

3.62 

30.50 

2.28 

84.65 

7.83 

10.86 

0.26 

0.22 

210.59 

0.84 

0.72 

142.59 

9.09 

176.26 

0.65 

9.13 

0.14 

0.78 

6.92 

2.53 

139.75 

57.25 

0.80 

6.97 

0.85 

81.38 

0.24 

649.73 

$31.27 

Tax 

Capacity 

Index/Rank 

77.3 / 17 

5907.3 / 1 

18.7 / 27 

79.8 / 16 

80.9 / 15 

96.8 / 14 

0.8 / 45 

0.1 / 50 

0.0 / B 

10.0 / 30 

5.0 / 33 

1.7 / 42 

12.2 / 28 

29.4 / 20 

20.8 / 26 

3.3 / 35 

217.6 / 10 

121.4 / 12 

440.8 / 7 

1.1 / 43 

3.4 / 34 

0.6 / 48 

31.3 / 19 

11.6 / 29 

97.5 / 13 

7.3 / 32 

270.7 1 8 

25.0 / 23 

34.7 / 18 

0.8 / 44 

0.7 / 47 

673.4 / 3 

2.7 / 37 

2.3 / 40 

455.9 / 5 

29.1 / 22 

563.6 / 4 

2.1 / 41 

29.2 / 21 

0.4 / 49 

2.5 / 39 

22.1 / 25 

8.1 / 31 

446.9 / 6 

183.1 / 11 

2.6 / 38 

22.3 / 24 

2.7 / 36 

260.2 / 9 

0.8 / 46 

2077.6 / 2 

100.0 

Tax 

Capacity 

$97 

962 

19 

59 

667 

98 

1 

0 

0 

36 

9 

1 

4 

106 

36 

3 

167 

142 

618 

0 

5 

1 

89 

15 

80 

11 

70 

13 

10 

0 

2 

305 

15 

5 

98 

98 

582 

2 

108 

0 

3 

5 

12 

2,288 

94 

0 

40 

4 

158 

1 

33 1 

$7,466 

Tax 

Revenue 

$88 

1,674 

0 

23 

6 

30 

0 

0 

0 

105 

0 

0 

1 

0 

2 

0 

112 

228 

738 

0 

0 

0 

76 

80 

90 

0 

150 

5 

3 

0 

0 

392 

0 

0 

176 

8 

709 

0 

0 

0 

0 

5 

3 

2,175 

49 

0 

0 

0 

132 

1 

404 

$7,466 

Revenue 

Per 

Capita 

$21.77 

3,213.84 

0.00 

9.76 

0.24 

9.41 

0.00 

0.00 

0.00 

9.27 

0.00 

0.00 

0.54 

0.00 

0.28 

0.00 

45.67 

61.19 

164.73 

0.00 

0.00 

0.00 

8.33 

19.07 

34.46 

0.00 

181.49 

2.87 

3.44 

0.00 

0.00 

270.47 

0.00 

0.00 

257.34 

0.76 

214.73 

0.00 

0.00 

0.00 

0.00 

7.61 

0.59 

132.89 

30.00 

0.00 

0.00 

0.00 

68.14 

0.20 

793.77 

$31.27 

Tax 

Effort 

Index/Rank 

90.1 / 14 

174.0 / 5 

0.0 / z 

39.1 / 20 

1.0 / 28 

31.1 / 23 

0.0 / z 

0.0 / z 

0.0 / z 

296.4 / 2 

0.0 / Z 

0.0 / z 

14.2 / 25 

0.0 / z 

4.2 / 27 

0.0 / z 

67.1 / 18 

161.1 / 6 

119.5 / 10 

0.0 / z 

0.0 / z 

0.0 / z 

85.2 / 15 

526.6 1 1 

113.0 / 11 

0.0 / z 

214.4 / 3 

36.7 / 21 

31.7 / 22 

0.0 / z 

0.0 / z 

128.4 / 7 

0.0 / z 

0.0 / z 

180.5 / 4 

8.4 / 26 

121.8 / 9 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

110.0 / 12 

23.4 / 24 

95.1 / 13 

52.4 / 19 

0.0 / z 

0.0 / z 

0.0 / z 

83.7 / 16 

82.1 / 17 

122.2 / 8 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

*No combined tax rate can be reported; see tables for particular severance taxes. 

B = Base is zero. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-30 

Severance Taxes: Oil And Gas- 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$954 

15,107 

4 

884 

10,159 

1,292 

0 

0 

0 

325 

0 

0 

0 

818 

140 

0 

2,562 

379 

9,634 

0 

0 

0 

1,189 

0 

1,238 

6 

878 

182 

70 

0 

0 

4,478 

133 

0 

1,425 

937 

9,066 

10 

596 

0 

0 

48 

32 

35,447 

1,271 

0 

46 

0 

644 

0 

4,423 

$104,378 

Capacity 

Per 

Capita 

$15.10 

1,844.64 

0.09 

23.85 

24.51 

25.44 

0.00 

0.00 

0.00 

1.82 

0.00 

0.00 

0.00 

4.51 

1.61 

0.00 

66.51 

6.46 

136.77 

0.00 

0.00 

0.00 

8.32 

0.00 

30.14 

0.08 

67.64 

7.22 

4.76 

0.00 

0.00 

196.45 

0.48 

0.00 

132.38 

5.55 

174.72 

0.23 

3.20 

0.00 

0.00 

4.28 

0.43 

137.75 

49.17 

0.00 

0.51 

0.00 

21.17 

0.00 

552.74 

$27.81 

Tax 

Capacity 

IndexJRank 

54.3 1 16 

6632.2 / 1 

0.3 / 31 

85.8 / 14 

88.1 / 13 

91.5 / 12 

0.0 / B 

0.0 / B 

0.0 / B 

6.5 / 25 

0.0 1 B 

0.0 / B 

0.0 / B 

16.2 / 22 

5.8 / 26 

0.0 / B 

239.1 / 9 

23.2 / 19 

491.7 1 6 

0.0 / B 

0.0 / B 

0.0 / B 

29.9 / 17 

0.0 1 B 

108.4 / 11 

0.3 / 32 

243.2 / 8 

26.0 / 18 

17.1 / 21 

0.0 / B 

0.0 / B 

706.3 / 3 

1.7 / 28 

0.0 / B 

475.9 1 7 

19.9 / 20 

628.2 / 4 

0.8 1 30 

11.5 / 24 

0.0 / B 

0.0 / B 

15.4 / 23 

1.5 1 29 

495.3 / 5 

176.8 / 10 

0.0 / B 

1.8 / 27 

0.0 / B 

76.1 / 15 

0.0 / B 

1987.3 / 2 

100.0 

Tax 

Capacity 

$61 

961 

0 

56 

646 

82 

0 

0 

0 

21 

0 

0 

0 

52 

9 

0 

163 

24 

613 

0 

0 

0 

76 

0 

79 

0 

56 

12 

4 

0 

0 

285 

8 

0 

91 

60 

577 

1 

38 

0 

0 

3 

2 

2,255 

81 

0 

3 

0 

41 

0 

281 

$6,640 

Tax 

Revenue 

$84 

1,674 

0 

21 

6 

19 

0 

0 

0 

21 

0 

0 

0 

0 

2 

0 

111 

21 

732 

0 

0 

0 

76 

0 

90 

0 

57 

5 

0 

0 

0 

362 

0 

0 

151 

6 

709 

0 

0 

0 

0 

2 

1 

2,171 

49 

0 

0 

0 

0 

0 

271 

$6,640 

Revenue 

Per 

Capita 

$20.89 

3,213.84 

0.00 

9.01 

0.24 

5.91 

0.00 

0.00 

0.00 

1.88 

0.00 

0.00 

0.00 

0.00 

0.28 

0.00 

45.46 

5.54 

163.30 

0.00 

0.00 

0.00 

8.33 

0.00 

34.46 

0.00 

68.48 

2.87 

0.00 

0.00 

0.00 

249.67 

0.00 

0.00 

220.32 

0.53 

214.73 

0.00 

0.00 

0.00 

0.00 

2.57 

0.23 

132.64 

29.54 

0.00 

0.00 

0.00 

0.00 

0.00 

532.58 

$27.81 

Tax 

Effort 

IndexJRank 

138.3 / 3 

174.2 / 1 

0.0 / z 

37.8 / 19 

1.0 / 23 

23.2 / 20 

0.0 / z 

0.0 / z 

0.0 / z 

103.2 / 8 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

17.1 / 21 

0.0 / z 

68.3 / 14 

85.7 / 13 

119.4 / 6 

0.0 / z 

0.0 / z 

0.0 / z 

100.1 / 10 

0.0 / z 

114.3 / 7 

0.0 / z 

101.2 / 9 

39.7 / 18 

0.0 / z 

0.0 / 24 

0.0 / z 

127.1 / 4 

0.0 / z 

0.0 / z 

166.4 / 2 

9.6 / 22 

122.9 / 5 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

60.2 / 15 

53.8 / 17 

96.3 / 12 

60.1 / 16 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

96.4 / 11 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 6.36%. 

*Tax base is the value of oil and gas production in millions of dollars. 

B = Base is zero. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-31 

Severance Taxes: Coal - I985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$1,186 

19 

128 

2 

1 

424 

0 

0 

0 

0 

4 

0 

0 

1,823 

884 

15 

26 

4,234 

5 

0 

80 

0 

0 

0 

0 

151 

439 

0 

0 

0 

0 

520 

0 

0 

250 

1,203 

105 

0 

2,314 

0 

0 

0 

209 

527 

354 

0 

1,222 

59 

4,255 

0 

1,598 

$22,037 

Capacity 

Per 

Capita 

$8.01 

1.00 

1.09 

0.02 

0.00 

3.56 

0.00 

0.00 

0.00 

0.00 

0.02 

0.00 

0.00 

4.29 

4.36 

0.15 

0.29 

30.85 

0.03 

0.00 

0.49 

0.00 

0.00 

0.00 

0.00 

0.81 

14.42 

0.00 

0.00 

0.00 

0.00 

9.73 

0.00 

0.00 

9.90 

3.04 

0.86 

0.00 

5.30 

0.00 

0.00 

0.00 

1.19 

0.87 

5.84 

0.00 

5.82 

0.36 

59.66 

0.00 

85.25 

$2.51 

Tax 

Capacity 

IndexJRank 

319.5 / 7 

39.7 / 17 

43.6 / 16 

0.8 / 26 

0.0 / 28 

142.2 / 13 

0.0 / B 

0.0 / B 

0.0 / B 

0.0 / B 

0.7 / 27 

0.0 / B 

0.0 / B 

171.2 / 12 

174.1 / 11 

5.8 / 24 

11.4 / 23 

1231.1 / 3 

1.2 / 25 

0.0 / B 

19.6 / 21 

0.0 / B 

0.0 / B 

0.0 / B 

0.0 / B 

32.4 / 20 

575.4 / 4 

0.0 / B 

0.0 / B 

0.0 / B 

0.0 / B 

388.3 / 6 

0.0 / B 

0.0 / B 

395.2 / 5 

121.3 / 14 

34.5 / 19 

0.0 / B 

211.5 / 10 

0.0 / B 

0.0 / B 

0.0 / B 

47.7 / 15 

34.9 / 18 

233.0 / 8 

0.0 / B 

232.1 / 9 

14.5 / 22 

2380.9 / 2 

0.0 1 B 

3402.1 / 1 

100.0 

Tax 

Capacity 

$32 

1 

3 

0 

0 

12 

0 

0 

0 

0 

0 

0 

0 

49 

24 

0 

1 

115 

0 

0 

2 

0 

0 

0 

0 

4 

12 

0 

0 

0 

0 

14 

0 

0 

7 

33 

3 

0 

63 

0 

0 

0 

6 

14 

10 

0 

33 

2 

115 

0 

43 

$598 

Tax 

Revenue 

$4 

0 

0 

0 

0 

9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

207 

0 

0 

0 

0 

0 

0 

0 

0 

92 

0 

0 

0 

0 

0 

0 

0 

25 

2 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

0 

132 

0 

126 

$598.2 

Revenue 

Per 

Capita 

$0.88 

0.00 

0.00 

0.00 

0.00 

2.74 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.17 

55.65 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

110.83 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

37.02 

0.16 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.36 

0.00 

0.00 

0.00 

0.00 

0.00 

68.14 

0.00 

246.92 

$2.51 

Tax 

Effort 

IndexJRank 

11.0 I 10 

0.0 / z 

0.0 / z 

15.1 / 9 

0.0 / z 

77.1 / 6 

0.0 / Z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / Z 

0.0 / z 

0.0 I Z 

0.0 / z 

60.9 / 7 

180.4 / 4 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

768.8 / 1 

0.0 / z 

0.0 / z 

0.0 / Z 

0.0 / z 

0.0 / z 

0.0 I z 

0.0 / z 

373.8 / 2 

5.4 / 11 

0.0 / z 

0.0 1 z 

0.0 / Z 

0.0 / z 

0.0 / Z 

0.0 / z 

30.4 / 8 

0.0 / Z 

0.0 1 Z 

0.0 / z 

0.0 / z 

0.0 / Z 

114.2 / 5 

0.0 / z 

289.7 / 3 

100.0 

N0TE:AU per capita amounts are in dollars; tot. amounts are in millions of dollars. 

Representative Rate = 2.71%. 

*Tax base is the value of coal production in millions of dollars. 

B = Base is zero. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-32 

Severance Taxes: Nonfuel Minerals - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$446 

94 

1,568 

271 

2,218 

427 

85 

3 

0 

1,564 

969 

59 

404 

480 

314 

266 

323 

262 

487 

43 

262 

115 

1,398 

1,599 

99 

735 

225 

102 

60 1 

27 

177 

673 

675 

475 

22 

570 

237 

117 

792 

14 

276 

197 

455 

1,943 

389 

45 

384 

225 

111 

123 

629 

$23,976 

Capacity 

Per 

Capita 

$1.05 

1.71 

4.67 

1.09 

0.80 

1.26 

0.25 

0.05 

0.00 

1.31 

1.54 

0.53 

3.82 

0.40 

0.54 

0.88 

1.25 

0.67 

1.03 

0.35 

0.57 

0.19 

1.46 

3.62 

0.36 

1.39 

2.59 

0.60 

6.10 

0.26 

0.22 

4.41 

0.36 

0.72 

0.30 

0.50 

0.68 

0.41 

0.63 

0.14 

0.78 

2.64 

0.91 

1.13 

2.25 

0.80 

0.64 

0.48 

0.54 

0.24 

11.74 

$0.95 

Tax 

Capacity 

IndexJRank 

110.4 / 19 

179.7 / 10 

489.9 1 3 

114.4 / 18 

83.8 / 23 

131.7 1 15 

26.7 / 45 

4.8 / 50 

0.0 / B 

137.0 / 14 

161.5 / 11 

55.7 / 35 

400.3 / 5 

41.4 / 39 

56.9 / 34 

91.8 / 22 

131.3 / 16 

70.0 / 28 

108.2 / 20 

36.8 / 42 

59.4 / 32 

19.7 / 48 

153.2 / 12 

379.7 / 6 

37.7 1 41 

145.5 / 13 

271.2 / 8 

63.2 / 31 

639.4 / 2 

26.9 / 44 

23.3 / 47 

462.2 / 4 

37.8 / 40 

75.6 / 26 

32.0 / 43 

52.8 / 36 

71.5 / 27 

43.4 / 38 

66.5 / 30 

14.4 / 49 

82.1 1 25 

277.1 / 7 

95.1 / 21 

118.2 / 17 

235.7 / 9 

83.8 / 24 

67.0 / 29 

50.8 / 37 

57.1 / 33 

25.6 1 46 

1231.0 / 1 

100.0 

Tax 

Capacity 

$4 

1 

15 

3 

2 1 

4 

1 

0 

0 

15 

9 

1 

4 

5 

3 

3 

3 

2 

5 

0 

2 

1 

13 

15 

1 

7 

2 

1 

6 

0 

2 

6 

6 

5 

0 

5 

2 

1 

8 

0 

3 

2 

4 

18 

4 

0 

4 

2 

1 

1 

6 

$228 

Tax 

Revenue 

$0 

0 

0 

2 

0 

2 

0 

0 

0 

84 

0 

0 

1 

0 

0 

0 

0 

0 

6 

0 

0 

0 

0 

80 

0 

0 

2 

0 

3 

0 

0 

30 

0 

0 

0 

1 

0 

0 

0 

0 

0 

4 

0 

4 

1 

0 

0 

0 

0 

1 

7 

$228 

Revenue 

Per 

Capita 

$0.00 

0.00 

0.00 

0.75 

0.00 

0.75 

0.00 

0.00 

0.00 

7.39 

0.00 

0.00 

0.54 

0.00 

0.00 

0.00 

0.04 

0.00 

1.43 

0.00 

0.00 

0.00 

0.00 

19.07 

0.00 

0.00 

2.17 

0.00 

3.44 

0.00 

0.00 

20.80 

0.00 

0.00 

0.00 

0.07 

0.00 

0.00 

0.00 

0.00 

0.00 

5.03 

0.00 

0.24 

0.46 

0.00 

0.00 

0.00 

0.00 

0.20 

14.27 

$0.95 

Tax 

Effort 

IndexJRank 

0.0 / z 

0.0 / z 

0.0 / z 

68.9 / 9 

0.0 / z 

59.8 / 10 

0.0 / z 

0.0 / z 

0.0 / z 

565.8 / 1 

0.0 1 z 

0.0 / z 

14.2 / 14 

0.0 / z 

0.0 / z 

0.0 / z 

2.8 / 16 

0.0 / z 

138.5 / 5 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

526.6 / 2 

0.0 / z 

0.0 / z 

84.0 / 7 

0.0 / z 

56.5 / 11 

0.0 / z 

0.0 1 z 

471.9 / 3 

0.0 / z 

0.0 / z 

0.0 / z 

13.1 / 15 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 / z 

190.5 / 4 

0.0 / z 

21.7 / 12 

20.6 / 13 

0.0 / z 

0.0 / z 

0.0 / z 

0.0 1 z 

82.1 / 8 

121.6 / 6 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 0.95%. 

*Tax base is the value of nonfuel mineral production in millions of dollars. 

B = Base is zero. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-33 

All Other Taxes - I985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$42,913 

9,476 

40,775 

24,707 

423,566 

47,859 

57,408 

8,876 

11,367 

156,184 

74,960 

14,558 

11,173 

169,999 

68,442 

36,315 

33,755 

40,328 

50,513 

13,835 

69,680 

95,361 

123,673 

59,068 

24,004 

66,605 

9,067 

21,323 

13,560 

14,931 

130,154 

15,828 

285,419 

72,670 

8,255 

142,110 

40,381 

33,921 

159,276 

13,465 

35,434 

7,903 

53,540 

220,715 

17,259 

6,482 

82,980 

61,185 

19,736 

62,815 

6,734 

$3,310,543 

Capacity 

Per 

Capita 

$44.23 

75.38 

53.02 

43.41 

66.58 

61.39 

74.96 

59.14 

75.25 

56.95 

51.98 

57.24 

46.07 

61.08 

51.58 

52.19 

57.10 

44.86 

46.72 

49.26 

65.75 

67.88 

56.40 

58.38 

38.07 

54.89 

45.49 

55.03 

60.04 

62.00 

71.33 

45.24 

66.52 

48.15 

49.94 

54.82 

50.70 

52.32 

55.69 

57.65 

43.88 

46.26 

46.60 

55.88 

43.48 

50.21 

60.27 

57.51 

42.25 

54.52 

54.83 

$57.47 

Tax 

Capacity 

IndexIRank 

77.0 / 46 

131.2 / 1 

92.3 / 29 

75.5 / 49 

115.9 / 6 

106.8 / 10 

130.4 / 3 

102.9 / 14 

130.9 1 2 

99.1 / 20 

90.5 / 32 

99.6 / 18 

80.2 / 42 

106.3 / 11 

89.8 / 33 

90.8 / 31 

99.4 / 19 

78.1 / 45 

81.3 / 39 

85.7 / 37 

114.4 / 8 

118.1 1 5 

98.1 / 21 

101.6 / 15 

66.2 / 51 

95.5 / 25 

79.2 / 43 

95.7 / 24 

104.5 / 13 

107.9 / 9 

124.1 / 4 

78.7 / 44 

115.7 / 7 

83.8 / 38 

86.9 / 36 

95.4 / 27 

88.2 / 34 

91.0 / 30 

96.9 / 23 

100.3 / 16 

76.3 / 47 

80.5 / 41 

81.1 / 40 

97.2 / 22 

75.7 / 48 

87.4 / 35 

104.9 / 12 

100.1 1 17 

73.5 / 50 

94.9 / 28 

95.4 / 26 

100.0 

Tax 

Capacity 

$178 

39 

169 

102 

1,755 

198 

238 

37 

47 

647 

311 

60 

46 

705 

284 

151 

140 

167 

209 

57 

289 

395 

513 

245 

99 

276 

38 

88 

56 

62 

539 

66 

1,183 

301 

34 

589 

167 

141 

660 

56 

147 

33 

222 

915 

72 

27 

344 

254 

82 

260 

28 

$13,720 

Tax 

Revenue 

$267 

35 

105 

44 

1,659 

136 

167 

111 

87 

893 

226 

17 

29 

367 

59 

14 

60 

298 

168 

25 

637 

166 

116 

294 

36 

113 

22 

44 

125 

lo6 

199 

7 1 

2,128 

122 

29 

221 

136 

188 

1,138 

19 

157 

27 

169 

1,263 

34 

65 

670 

382 

172 

102 

5 

$13,720 

Revenue 

Per 

Capita 

$66.43 

67.18 

32.93 

18.83 

62.92 

42.03 

52.58 

178.38 

139.15 

78.57 

37.76 

16.42 

29.31 

31.81 

10.74 

4.79 

24.31 

80.03 

37.51 

21.13 

145.06 

28.43 

12.72 

70.07 

13.82 

22.43 

26.33 

27.15 

133.54 

105.86 

26.35 

49.10 

119.64 

19.55 

42.31 

20.56 

41.26 

69.80 

96.03 

19.39 

46.78 

38.35 

35.51 

77.12 

20.73 

121.88 

117.37 

86.68 

88.95 

21.29 

9.97 

$57.47 

Tax 

Effort 

IndexIRank 

150.2 / 13 

89.1 / 21 

62.1 / 31 

43.4 / 36 

94.5 / 20 

68.5 / 29 

70.1 / 28 

301.6 / 1 

184.9 / 7 

138.0 / 15 

72.6 / 27 

28.7 / 47 

63.6 / 30 

52.1 / 33 

20.8 / 49 

9.2 / 51 

42.6 1 38 

178.4 / 9 

80.3 / 25 

42.9 / 37 

220.6 / 4 

41.9 / 39 

22.6 / 48 

120.0 / 17 

36.3 / 45 

40.9 / 40 

57.9 / 32 

49.3 / 34 

222.4 / 3 

170.7 / 11 

36.9 / 44 

108.5 / 18 

179.9 / 8 

40.6 / 41 

84.7 / 22 

37.5 / 43 

81.4 / 24 

133.4 / 16 

172.4 / 10 

33.6 / 46 

106.6 / 19 

82.9 / 23 

76.2 / 26 

138.0 / 14 

47.7 1 35 

242.7 / 2 

194.7 / 6 

150.7 / 12 

210.5 / 5 

39.1 / 42 

18.2 / 50 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 0.41%. 

*Tax base is aggregate personal income in millions of dollars. 

Source: ACIR staff estimates. 
State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Tax 

Base* 

$24 

1,400 

3 

1 

517 

4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

430 

0 

0 

0 

14 

3 

2 

0 

8 

1 

0 

0 

0 

206 

0 

0 

32 

0 

28 

0 

0 

0 

0 

1 

0 

443 

23 

0 

0 

0 

0 

1 

63 

$3,207 

Table 3-34 

Rents and Royalties - I985 

Capita 

$5.88 

2,687.35 

0.80 

0.22 

19.61 

1.28 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.06 

0.03 

0.64 

0.00 

95.99 

0.00 

0.00 

0.00 

1.56 

0.68 

0.62 

0.00 

9.98 

0.83 

0.00 

0.00 

0.00 

142.19 

0.00 

0.00 

47.29 

0.00 

8.55 

0.00 

0.01 

0.00 

0.00 

1.96 

0.00 

27.06 

13.92 

0.00 

0.00 

0.00 

0.01 

0.29 

124.70 

$13.43 

Capacity Tax 

Per Capacity 

IndexJRank 

Tax 

Capacity 

$24 

1,400 

3 

1 

517 

4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

430 

0 

0 

0 

14 

3 

2 

0 

8 

1 

0 

0 

0 

206 

0 

0 

32 

0 

28 

0 

0 

0 

0 

1 

0 

443 

23 

0 

0 

0 

0 

1 

63 

$3,207 

Tax 

Revenue 

$24 

1,400 

3 

1 

517 

4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

430 

0 

0 

0 

14 

3 

2 

0 

8 

1 

0 

0 

0 

206 

0 

0 

32 

0 

28 

0 

0 

0 

0 

1 

0 

443 

23 

0 

0 

0 

0 

1 

63 

$3,207 

Revenue 

Per 

Capita 

$5.88 

2,687.35 

0.80 

0.22 

19.61 

1.28 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.06 

0.03 

0.64 

0.00 

95.99 

0.00 

0.00 

0.00 

1.56 

0.68 

0.62 

0.00 

9.98 

0.83 

0.00 

0.00 

0.00 

142.19 

0.00 

0.00 

47.29 

0.00 

8.55 

0.00 

0.01 

0.00 

0.00 

1.96 

0.00 

27.06 

13.92 

0.00 

0.00 

0.00 

0.01 

0.29 

124.70 

$13.43 

Tax 

Effort 

IndexIRank 

100.0 /S 

100.0 IS 

100.0 is 

100.0 /s 

100.0 /s 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 IS 

100.0 /s 

100.0 /s 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 IS 

100.0 1s 

100.0 1s 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /s 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 /S 

100.0 IS 

100.0 /S 

100.0 /S 

100.0 1s 

100.0 IS 

100.0 /S 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 100.00%. 

*Tax base is actual receipts from rents and royalties in millions of dollars. 

S = AU states have the same effort index because of the design of this revenue base. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Table 3-35 

Payments Under The Mineral Leasing Act - 1985 

Tax 

Base* 

$0.2 

23.9 

1.1 

0.7 

41.9 

42.8 

0.0 

0.0 

0.0 

0.1 

0.0 

0.0 

3.8 

0.0 

0.0 

0.0 

0.8 

0.0 

0.8 

0.0 

0.0 

0.0 

0.0 

0.0 

1.1 

0.0 

21.2 

0.3 

9.9 

0.0 

0.0 

150.1 

0.0 

0.0 

9.5 

0.0 

2.9 

1.8 

0.0 

0.0 

0.0 

1.2 

0.0 

0.0 

34.8 

0.0 

0.0 

0.6 

0.0 

0.0 

199.8 

$549.5 

Capacity 

Per 

Capita 

$0.05 

45.96 

0.35 

0.31 

1.59 

13.25 

0.00 

0.00 

0.00 

0.01 

0.00 

0.00 

3.76 

0.00 

0.00 

0.00 

0.31 

0.00 

0.18 

0.00 

0.00 

0.00 

0.00 

0.00 

0.43 

0.00 

25.62 

0.21 

10.58 

0.00 

0.00 

103.50 

0.00 

0.00 

13.85 

0.00 

0.89 

0.66 

0.00 

0.00 

0.00 

1.74 

0.00 

0.00 

21.17 

0.00 

0.00 

0.15 

0.01 

0.00 

392.62 

$2.30 

Tax 

Capacity 

IndexJRank 

2.2 / 21 

1,996.7 / 3 

15.4 / 15 

13.3 / 17 

69.0 / 11 

575.8 / 7 

0.0 / z 

0.0 / z 

0.0 / z 

0.3 / 23 

0.0 / z 

0.0 / z 

163.2 / 9 

0.0 / z 

0.0 / 22 

0.0 / 23 

13.5 / 16 

0.0 / z 

7.7 1 19 

0.0 / z 

0.0 / z 

0.0 / z 

0.2 / 24 

0.0 / 17 

18.5 1 14 

0.0 1 z 

1,113.1 / 4 

9.1 / 18 

459.8 / 8 

0.0 1 z 

0.0 / z 

4,496.8 / 2 

0.0 / z 

0.0 / z 

601.9 1 6 

0.0 1 z 

38.5 / 12 

28.5 / 13 

0.0 / 24 

0.0 / z 

0.0 / z 

75.5 1 10 

0.0 / z 

0.0 / 6 

919.8 / 5 

0.0 / z 

0.0 1 z 

6.3 1 20 

0.6 1 22 

0.0 1 20 

17,058.4 / 1 

100.0 

Tax 

Capacity 

$0 

24 

1 

1 

42 

43 

0 

0 

0 

0 

0 

0 

4 

0 

0 

0 

1 

0 

1 

0 

0 

0 

0 

0 

1 

0 

2 1 

0 

10 

0 

0 

150 

0 

0 

9 

0 

3 

2 

0 

0 

0 

1 

0 

0 

35 

0 

0 

1 

0 

0 

200 

$549 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Tax 

Revenue 

$0 

24 

1 

1 

42 

43 

0 

0 

0 

0 

0 

0 

4 

0 

0 

0 

1 

0 

1 

0 

0 

0 

0 

0 

1 

0 

21 

0 

10 

0 

0 

150 

0 

0 

9 

0 

3 

2 

0 

0 

0 

1 

0 

0 

35 

0 

0 

1 

0 

0 

200 

$549 

Revenue 

Per 

Capita 

$0.05 

45.96 

0.35 

0.31 

1.59 

13.25 

0.00 

0.00 

0.00 

0.01 

0.00 

0.00 

3.76 

0.00 

0.00 

0.00 

0.31 

0.00 

0.18 

0.00 

0.00 

0.00 

0.00 

0.00 

0.43 

0.00 

25.62 

0.21 

10.58 

0.00 

0.00 

103.50 

0.00 

0.00 

13.85 

0.00 

0.89 

0.66 

0.00 

0.00 

0.00 

1.74 

0.00 

0.00 

21.17 

0.00 

0.00 

0.15 

0.01 

0.00 

392.62 

$2.30 

Tax 

Effort 

IndexJRank 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 /S 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 IS 

100.0 /S 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 /S 

100.0 /S 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 /S 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 1s 

100.0 

~e~resentkive Rate = 100.00%. 

*Tax base is actual receipts in millions ef dollars from payments under the federal Minwal hing Ad. 

S = AU statea have the same effort index because of the design of this revenue base. 

Z = Zero revenue reported. 

Source: ACIR staff estimates. 
Table 3-36 

User Charges - 1985 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Totd 

Tax 

Base* 

$42,913 

9,476 

40,775 

24,707 

423,566 

47,859 

57,408 

8,876 

11,367 

156,184 

74,960 

14,558 

11,173 

169,999 

68,442 

36,315 

33,755 

40,328 

50,513 

13,835 

69,680 

95,361 

123,673 

59,068 

24,004 

66,605 

9,067 

21,323 

13,560 

14,931 

130,154 

15,828 

285,419 

72,670 

8,255 

142,110 

40,381 

33,921 

159,276 

13,465 

35,434 

7,903 

53,540 

220,715 

17,259 

6,482 

82,980 

61,185 

19,736 

62,815 

6,734 

$3,310,543 

Capacity 

Per 

Capita 

$240.18 

409.32 

287.93 

235.71 

361.55 

333.36 

407.05 

321.15 

408.65 

309.25 

282.29 

310.84 

250.20 

331.67 

280.10 

283.38 

310.06 

243.58 

253.69 

267.49 

357.05 

368.62 

306.26 

317.04 

206.74 

298.06 

247.04 

298.80 

326.04 

336.70 

387.35 

245.66 

361.21 

261.46 

271.21 

297.67 

275.30 

284.11 

302.41 

313.05 

238.26 

251.21 

253.03 

303.43 

236.12 

272.67 

327.28 

312.31 

229.42 

296.05 

297.74 

$312.07 

Tax 

Capacity 

IndexIRank 

77.0 / 46 

131.2 / 1 

92.3 / 29 

75.5 / 49 

115.9 / 6 

106.8 / 10 

130.4 / 3 

102.9 / 14 

130.9 / 2 

99.1 / 20 

90.5 / 32 

99.6 / 18 

80.2 / 42 

106.3 / 11 

89.8 / 33 

90.8 / 31 

99.4 / 19 

78.1 / 45 

81.3 / 39 

85.7 / 37 

114.4 / 8 

118.1 1 5 

98.1 / 21 

101.6 / 15 

66.2 / 51 

95.5 / 25 

79.2 / 43 

95.7 / 24 

104.5 / 13 

107.9 / 9 

124.1 / 4 

78.7 ' / 44 

115.7 1 7 

83.8 / 38 

86.9 / 36 

95.4 / 27 

88.2 / 34 

91.0 / 30 

96.9 / 23 

100.3 / 16 

76.3 1 47 

80.5 1 41 

81.1 / 40 

97.2 / 22 

75.7 / 48 

87.4 / 35 

104.9 / 12 

100.1 / 17 

73.5 / 50 

94.9 / 28 

95.4 1 26 

100.0 

Tax 

Capacity 

$966 

213 

918 

556 

9,532 

1,077 

1,292 

200 

256 

3,515 

1,687 

328 

251 

3,826 

1,540 

817 

760 

908 

1,137 

311 

1,568 

2,146 

2,783 

1,329 

540 

1,499 

204 

480 

305 

336 

2,929 

356 

6,423 

1,635 

186 

3,198 

909 

763 

3,585 

303 

797 

178 

1,205 

4,967 

388 

146 

1,867 

1,377 

444 

1,414 

152 

$74,504 

Tax 

Revenue 

$1,565 

42 1 

85 1 

558 

9,170 

1,189 

659 

296 

147 

4,080 

2,530 

338 

288 

2,542 

1,869 

1,078 

795 

808 

1,501 

242 

1,110 

1,492 

3,393 

1,797 

982 

1,331 

218 

646 

424 

186 

2,050 

395 

5,850 

1,588 

348 

3,254 

1,135 

930 

2,491 

242 

1,065 

181 

1,470 

4,636 

486 

146 

1,788 

1,550 

463 

1,677 

252 

$74,504 

Revenue 

Per 

Capita 

$389.26 

808.66 

267.13 

236.48 

347.80 

368.01 

207.61 

475.86 

235.37 

358.98 

423.39 

320.32 

286.84 

220.34 

339.95 

373.86 

324.33 

216.83 

334.95 

208.13 

252.71 

256.33 

373.39 

428.64 

375.67 

264.61 

264.22 

402.36 

452.52 

186.60 

271.06 

272.68 

328.95 

253.89 

508.32 

302.90 

343.82 

346.20 

210.13 

249.86 

318.13 

255.74 

308.66 

283.17 

295.36 

273.54 

313.29 

351.51 

239.07 

351.24 

495.75 

$312.07 

Tax 

Effort 

IndexJRank 

162.1 / 5 

197.6 / 1 

92.8 / 38 

100.3 / 32 

96.2 / 35 

110.4 / 25 

51.0 / 51 

148.2 1 7 

57.6 / 49 

116.1 / 21 

150.0 / 6 

103.0 / 29 

114.6 / 22 

66.4 / 48 

121.4 / 19 

131.9 / 13 

104.6 / 27 

89.0 / 40 

132.0 / 12 

77.8 1 43 

70.8 / 44 

69.5 / 46 

121.9 / 17 

135.2 / 9 

181.7 / 3 

88.8 / 41 

107.0 1 26 

134.7 / 10 

138.8 / 8 

55.4 / 50 

70.0 / 45 

111.0 / 24 

91.1 / 39 

97.1 / 34 

187.4 / 2 

101.8 / 31 

124.9 / 15 

121.9 / 18 

69.5 / 47 

79.8 1 42 

133.5 / 11 

101.8 / 30 

122.0 / 16 

93.3 / 37 

125.1 / 14 

100.3 / 33 

95.7 / 36 

112.6 / 23 

104.2 / 28 

118.6 / 20 

166.5 / 4 

100.0 

N0TE:AU per capita amounts are in dollars; total amounts are in millions of dollars. 

Representative Rate = 2.25%. 

*Tax base is aggregate personal income in millions of dollars. 

Source: ACIR staff estimates. 

Alternative Measures of 

Fiscal Capacity and Their Uses 

TYPES OF FISCAL CAPACITY INDICES for U.S. cities have been constructed by Helen F. Ladd 

In this appendix four fiscal capacity indices are dis- and colleagues.5 

cussed: Per Capita Personal Income (PCI), Gross State 

Product (GSP), Total Taxable Resources (TTR), and Currency of the Data 

Export-Adjusted Personal Income (EAI). These indices PC1 is available with a one-year lag. GSP and TTR 

are compared with ACIR's Representative Tax System have not been calculated over a long enough period to 

(RTS) and the Representative Revenue System (R-). establish a schedule; in principle, though, they could beThe selection is not arbitrary. These indices are the come available with a One-Year lag. The RTS and RRS 

subject of the current debate on measuring capacity, have generally been available after two years, although 

and, with the exce~tion of the EN, have also been with additional resources, the lag could be reduced to 

culited for a number of years in the United States by 

government agencies. They are all available for immediate use, again with the exception of the EAI index. 

After a summary comparison of the indices, PCI, 

GSP, and TTR are then discussed because they are related measures of fiscal capacity. This sets the stage for 

the theoretical concept represented by the EAI. 

Comparison of the Indices 

Figure 1 summarizes the basic characteristics of 

the fiscal capacity indices described in this chapter, emphasizing features of their construction and practical 

applicability. 

Availability 

Data on PCI, RTS, and RRS are all currently available from different sources. The Bureau of Economic 

Analysis (BEA) of the U.S. Department of Commerce 

routinely produces estimates of personal income by 

state and local area;' ACIR itself calculates the RTS 

and RRS; while the BEA may estimate GSP yearly.2 

The U.S. Treasury Department produced the experimental estimates of GSP and TTR for 1981-84 shown in 

this report.3 The components needed to estimate TTR, 

aside from GSP itself, are also available from the BEA. 

Steven M. Barro, in a study for the U.S. Treasury Department? estimated EAI for 1981. Also, EAI figures 

one year also. 

Substate Areas 

Although PC1 is routinely available for many local 

areas, and ACIR has experimented with a metropolitan-area RTS,B a substate version of GSP or TTR is unlikely. (Some measure of this sort for local areas may be 

possible with data at hand; the possibility has not yet 

been explored.) State governments have a good deal of 

experience in constructing their own intrastate measures (particularly for state-local revenue sharing programs) using data that may not be comparable between 

states but may be particularly appropriate to the individual state's tax resources. Some of the intrastate 

measures7 resemble the RTSIRRS because they use 

statutorily defined tax bases. Although there is currently no national effort to produce local measures that 

allow for interstate comparability of localities, the previously cited Ladd study may serve as a theoretical basis for such work. 

Comprehensiveness 

PC1 and GSP do not explicitly measure state areas' 

ability to "export" taxes and so are not comprehensive 

indicators of revenue-raising capacity. Unlike the RRS, 

the RTS excludes nontax revenue sources that governments use-notably user charges-although the RTS is 
Figure 1 

Prominent Features of the Fiscal Capacity Measures: A Comparative Description 

MEASURES OF FISCAL CAPACITY 

es;l 

Characteristic 

Currently Available Annually? 

Speed of Routine 

Availability 

Routinely Available for 

Substate Areas? 

Designed for Comprehensive 

Coverage of All Potential 

Revenue Sources 

Focuses on: 

Designed to Measure: 

Components of the 

Measures 

What is the Underlying Source of 

Government Revenues? 

Per Capita 

Personal 

Income 

Yes 

1 Year 

Delay 

Yes 

No 

Residents 

Only 

Individuals' 

Ability to 

Pay Taxes 

Types of 

Incomes 

Resident 

Incomes 

cis! 

Gross State 

Product 

Planned 

1 Year Delay* 

Expected 

No 

All 

Taxpayers 

Individuals' 

Ability to 

Pay Taxes 

Types of 

Incomes 

MacroEconomic 

Income 

TTR 

Total Taxable 

Resources 

Planned 

1 Year Delay* 

Expected 

Yes 

All 

Taxpayers 

Individuals' 

Ability to 

Pay Taxes 

Types of 

Incomes 

MacroEconomic 

Income 

EAI 

~x~oGdjusted 

Personal Income 

No 

NA 

Yes 

All 

Taxpayers 

Individuals' 

Ability to 

Pay Taxes 

Types of 

Incomes 

Resident 

Incomes, 

Adjusted for Tax 

Exportation 

RTS 

Representative 

Tax System 

Yes 

1-2 Year 

Delay 

No 

All 

Taxpayers 

Governments' 

Revenue 

Potentials 

Statutory Tax 

Bases 

Statutory Tax 

Bases 

RRS 

Representative 

Revenue System 

Yes 

1-2 Year 

Delay 

No 

Yes 

All 

Taxpayers 

Governments' 

Revenue 

Potentials 

Statutory 

Revenue Bases 

Statutory 

Revenue Bases 

*Because of limited experience, time required to produce these estimates is difficult to predict. Estimates for 1985 were not available by late 1987. 

Source: ACIR staff, based on published and unpublished appraisals of the measures. 
intended for comprehensive coverage of the capacity to 

levy taxes. In large part, the EAI, TTR, and RRS were 

designed to be more comprehensive than their ancestors. The five remaining indices have a broader ken for 

they focus (in one way or another) on all taxpayers, not 

just on individuals residing in the area under study. 

Individuals' Taxpaying Ability versus 

Governments' 

Revenue-Collecting Potential 

This report emphasizes the distinction between 

two related but frequently confused concepts that underlie fiscal capacity indices: (a) individuals' ability to 

pay taxes and other levies, and (b) a government's ability to collect revenues. This distinction has been 

stressed by Douglas Clark in responding to criticism of 

the RTSa for its alleged failure to embody accurately 

the purchasing power of residents of a jurisdiction, 

which is one (though not necessarily the only) notion of 

fiscal capacity: 

. . . [Mly own preference is to keep 

the RTS and income (e.g., Export-Adjusted Income) approaches separate 

and distinct. Efforts to make the income approach into an RTS or vice 

versa simply muddle the two concepts 

and serve little purpose. Finally, there 

is no reason why the two approaches 

should produce the same results.9 

The contrast between individuals' taxpayingability 

and governments' revenue-collecting potential is typified by a community with relatively low personal income but which contains within its boundaries a rich 

mineral deposit. If the community has the legal power 

to tax the income generated by this deposit, it may enjoy relatively high levels of public services in return for 

a comparatively low sacrifice of its own personal income. 

On the other hand, without such authority, given 

below-average personal income, the community could 

finance an average level of public services with a relatively high tax burden on its personal income. In this illustration, the distinction between the two concepts of 

fiscal capacity arises because the local government may 

discriminate among types of income and focus its tax 

burden on mineral wealth, which is relatively immobile 

and would typically be owned by a minority of voters, if 

any, in the community. In this light, from the government's standpoint, mineral income is more valuable 

than other types of personal income, though to the recipients of the income there, no such distinction applies. 

In general, a government's ability to collect taxes is 

a function of the composition of taxable resources, the 

types of business activity, personal income, and property, whereas individuals' ability to pay taxes is strictly 

a consequence of their personal income, comprehensively defined. Moreover, the opportunities for tax exporting in a jurisdiction depend on the residency of 

ownership of taxable resources as well as on their composition. 

Calculated as they are from commonly used revenue bases, the RTS and RRS focus on governments' 

abilities to raise revenues. The other indices, however, 

tend to be more oriented to individuals' capacities to 

pay taxes. 

Components of the 

Fiscal Capacity Measures 

The components of the RTS are, as measured, commonly used tax bases, whereas the RRS adds nontax 

revenue bases, such as user charges. Consequently, the 

RTSIRRS are frequently applied to calculate "effective"l0 tax rates: revenue divided by standardized tax 

base. The components of the RTS and RRS can therefore help assess interstate tax competition. 

In contrary fashion, the other indices of fiscal capacity are calculated from particular types of economic 

income, such as salaries as opposed to business income: 

proprietors' earnings, dividends, and undistributed 

corporate profits. When detailed data on the components of income are available, this information is useful 

in monitoring shifts in the character of state economies. 

Concepts of the 

Underlying Revenue Source 

There is another key difference in the indices' conceptual underpinnings having to do with the underlying 

source of fiscal capacity. GSP $nd TTR are "macroeconomic indicators." Based as they are on the components of economic income, these indices derive from 

the economic theory of national income accounting. 

PC1 and EAI stem from residential incomes, which are 

adjusted for tax exportation in the latter index." 

The RTS and RRS take a different tack, however, 

deriving from sums of statutory tax bases weighted by 

national average statutory tax rates. Thus the elements 

of the RTS and RRS are taken directly from the actual 

fiscal practice of state and local governments, and the 

resulting indices reflect in statistical terms the average 

fiscal behavior of states. 

PER CAPITA PERSONAL INCOME 

The most obvious source of tax revenue for a jurisdiction is, of course, the income of its taxpaying residents. What is at issue, after all, is their purchasing 

power. The report employs the standard economic concept of income: consumption of a person, family, or 

household plus the change in its net worth over a given 

period of time. Whatever is not consumed is saved, thus 

increasing net worth; if more is consumed than is received in a particular period, savings must necessarily 

be drawn down or indebtedness increased, decreasing 

net worth. 
Definitions and 

Alternative Sources 

State personal income is conventionally defined as 

the personal income of the residents of a state. Two official estimates of state personal income are available, 

one from the Bureau of the Census and the other from 

the Bureau of Economic Analysis (BEA). The Census 

figure is money income and is based on the monthly 

Current Population Survey. Money income is actual 

cash receipts, and includes gross wages and salaries, 

proprietors' income, pension and annuity payments, 

government transfers (such as AFDC and Social Security), alimony, cash rent, interest, and dividends. 

The BEA employs a different definition of income 

and estimates it with data from different sources, in 

particular data collected for operation of unemployment insurance programs and by the IRS. The most important distinction in definition is that the BEA figures 

include an imputation for the net rental value of owneroccupied housing. A house is analogous to a financial investment: The purchaser-investor is rewarded with a 

stream of benefits in the future resulting from the use 

of the house. Benefits are measured by analogy to the 

cash rental value of the house. Imputation effectively 

"credits" the homeowner with the cash rental value of 

the house (net of property taxes and costs of upkeep) as 

an addition to observed money income. This imputation treats home ownership in the same way as financial 

investments yielding a cash return. A homeowner has 

the choice of investing less ir! a house (or renting) and 

putting more into financial assets, or vice versa. 

With respect to tax capacity, it is undeniable that in 

the immediate sense, it is cash income that is used to 

pay all taxes, including property taxes. But the benefits 

of home ownership are also income; the owner can 

liquidate his or her holding and put the proceeds into a 

financial asset that earns a taxable cash return. 

Other components of BEA personal income are labor earnings, proprietors' income, rent, interest, dividends, and transfers. The Census figure is limited to the 

cash components of these received by members of 

households, including employees' contributions to social insurance (i.e., including gross wages and salaries), 

but not imputed net rent or in-kind transfers from governments. 

For state capacity measurement, the transfer component of personal income is a redundancy to the extent that it includes transfers from state and local governments. Income transferred from one state resident 

to another with no service rendered in return does not 

increase total income, thus it should only be counted 

once in the capacity measure. Personal income doublecounts such revenue and must therefore be adjusted.12 

State-Local Tax Deductibility 

come tax liability. Since capacity can be thought of as 

the level of resources that remain for state residents to 

allocate between public and private uses, after federal 

taxation, it would seem that subtraction of federal 

taxes paid is in order if personal income is used in capacity measurement. 

This would be an error. Owing to the deductibility 

from federal income tax of some state and local taxes, 

taxpayers in effect can shelter some of their income 

from federal taxation. The amount they are observed to 

shelter in this way, and thus their federal personal income tax liability, depends on their own state tax rates. 

These rates are a function of state fiscal policy and of 

taxpayer preferences. To be neutral with respect to 

states' actual fiscal policies-which is crucial for a capacity index-the measure must abstract from actual 

preferences for public versus private consumption. In 

other words, jurisdictions' capacity should be compared under the assumption that they are equally inclined to levy deductible taxes to finance state-local 

services. 

Exactly how adjustments for deductibility should 

be performed has never been well specified and is beyond the scope of this report. It should be pointed out 

that business taxes are also deductible (usually at 

higher rates than personal taxes), and the magnitude of 

this type of tax exporting-though it has never been estimated-may well be large. 

Lack of Comprehensiveness 

The principal weakness of personal income as a capacity measure is that state and local governments may 

also tax the incomes of nonresidents who work, own 

property or land, or do business within their jurisdiction. The personal income data used in measuring fiscal 

capacity are restricted to the personal income of residents. Such a measure does not reflect the availability 

of opportunities to tax nonresidents, except to the extent that a jurisdiction's advantages in tax exporting 

are reflected in higher prices of residential land there. 

Personal income is an incomplete measure of the totality of taxable resources. 

To date, personal income has been the sole measure of fiscal capacity used in any federal grant formula. 

However, legislation employing alternatives has been 

proposed repeatedly in the past and is now pending in 

both houses of Congress. 

GROSS STATE PRODUCT 

Although not currently incorporated in legislation, 

Gross State Product (GSP) has also been proposed as a 

measure of fiscal capacity13 and is the primary component of another proposal, Total Taxable Resources. 

Definition 

GSP is the total value of goods and services produced bv land. labor, and capital in a state area over a 

A problem in appraising the fiscal capacity of given of time.'~he total value of goods and servAmerican states arises from the deductibility of income ices produced is equal by accounting principles to the 

and property taxes in calculation of federal personal in- total of income received by those participating in said 
production, regardless of their place of residence. As 

discussed above, that income, with certain qualifications, is subject to taxation by state and local governments. Thus, if income measures the ability to pay state 

and local taxes, GSP as a capacity index would capture a 

great part of the income that may be taxed. Those elements that are "missing" are enumerated below in the 

discussion of TTR. 

The total value of "income produced" in GSP consists of the value added in production in the jurisdiction, but not the value of goods imported into the area. 

One way of measuring this value added is to measure its 

cost of production, which is the incomes of all parties in 

the jurisdiction participating in production. This is 

known as "GSP by type of income." 

Components 

The primary income components in GSP (as in 

GNP) are wages and salaries (including payroll taxes, 

contributions to pensions, and fringe benefits), proprietors' income, rental income, net interest paid, corporate profits, capital consumption (depreciation), business transfers (primarily bad debts written off by 

firms), and indirect business taxes, defined shortly. The 

income and profit amounts are all gross of income used 

to pay taxes on income and profits. Measuring GSP 

through income automatically nets out the value of 

goods imported into a jurisdiction. 

Indirect business taxes (sales taxes, excises, business licenses, property taxes, and severance taxes) are 

all the taxes and charges collected by governments that 

a firm may write off as a cost of doing business in computing its taxable net income or profits. Indirect business taxes are de facto income to governments, in effect 

a payment for public services or privileges that benefit 

firms. 

Business income is, of course, an important source 

of tax revenue for state and local governments. GSP 

measures this in its entirety. Insofar as they are capacity measures, GSP (and TTR) depart from personal and 

corporate income tax concepts by including capital consumption (i.e., depreciation through use). 

GSP includes a substantial portion of the personal 

income of residents, because most of any state's resident earners will work or own establishments in their 

state of residence. It also includes any sources of capital 

income for residents (rent, interest, and dividends) to 

the extent that the assets producing these incomes are 

also located in the state of residence. From the standpoint of capacity measurement, GSP also includes 

some items that arguably should be excluded. Adjustment for these items begin the process of transforming 

GSP into TTR. This process is elaborated in the Treasury report and its technical appendices.14 

Conclusion 

The major attraction of GSP is that it reflects comprehensively one principal means by which a jurisdiction may shift a part of its tax burden to nonresidents, 

the "exporting" of some taxes. GSP counts all income 

received by nonresidents that governments may tax. 

GSP also includes, in the category of indirect business 

taxes, some portion of nonresident income that already 

is being taxed. Thus GSP abstracts from actual statelocal tax policy in capturing the entirety of gross income produced that is accessible to state and local governments. 

The problem is that GSP resembles PC1 in its incompleteness, although their respective shortcomings 

do not match, and PC1 is demonstrably less comprehensive. GSP also neglects some specific components of 

resident income, which add to residents' ability to pay 

taxes and to the government's ability to collect them, 

but that resident PC1 does include. These components 

are chiefly the labor earnings of residents who commute to work in other states and the interest, dividends, and federal cash transfers received by state residents. The magnitude of such discrepancies for GSP is 

less than the "missing" elements of PCI.15 With respect 

to the other means of exporting taxes-the federal offset-GSP is guilty of the same shortcoming as personal 

income. The relative advantages of deductibility are not 

reflected. 

TOTAL TAXABLE RESOURCES 

The TTR index is a new entrant in the field of practical state fiscal capacity measurement, aiming to address the complementary shortcomings of PC1 and 

GSP. TTR is the unduplicated sum of GSP and resident 

income; thus it is the totality of income produced in the 

jurisdiction (which is GSP) plus any elements of resident income that were not produced in the residents' 

jurisdiction-in particular, interest, dividends, federal 

transfers, and the labor earnings of those state residents who commute to jobs in other state. Figure 2 relates the components of TTR to those of GSP and PC1 

that it includes. 

Additionally, some adjustments are made to GSP 

and personal income in light of the fiscal relationship of 

states to the federal government. GSP is a standard 

macroeconomic concept that overestimates state fiscal 

capacity, something it was never intended to measure 

in the first place. 

All federal indirect business taxes are subtracted 

from GSP. These funds are simply unavailable to states 

and localities (much less taxpayers) and thus cannot be 

either an augmentation of the ability to pay taxes or of 

any actual source of tax revenue. Nor may these liabilities be reduced through the federal offset by state-local 

fiscal policy, as in the case of federal personal and corporate income taxation. 

The main adjustment to personal income is the exclusion of transfer payments from shared federal-state 

grant-in-aid programs, such as AFDC. It is grants such 

as these for which the fiscal capacity index is intended 

to determine the allocations; hence the consequences of 

grant formulas should be removed from the data to the 

extent possible. Direct federal transfers to persons, 
Figure 2 

The Components of Total Taxable Resources and the Components of 

Gross State Product and Personal Income It Includes 

Component 

Capital Consumption Allowance ("Depreciation") 

Corporations, Proprietors, Owner-Occupied Housing 

Total Gross Per 

Taxable State Capita 

Resources Product Income (BEA) 

Business Transfers X X 

Indirect Business Taxes (All Governments) 

Sales, Excises, Property, Severance, Licenses, Rents and 

Royalties, Document and Stock Transfer, etc. 

Earnings of Nonresidents 

Labor Compensation (Working in state) 

Proprietors' Income (Situated in state) 

Earnings of Residents 

Labor Compensation (Working in state) 

Proprietors' Income (Situated in state) 

State-Local Government Income 

Profits of State Enterprises, Oil Bonuses, Earnings of 

Financial Assets, Payments in Lieu of taxes 

Earnings of Residents 

Labor compensation (Coming out-of-state) 

Proprietors' Income (Situated out-of-state) 

Private Capital Income 

Net Rent, Interest, Dividends, Capital Gains, 

Gross Profits of In-State Corporate Operations 

Cash Transfers (All Governments) 

Social Insurance, Income Maintenance, Other 

*PC1 as calculated by the Bureau of Economic Analysis excludes employer contributions to social insurance, which are defined as part of Gross 

State Product and Total Taxable Resources. 

Source: ACIR staff. 

such as Social Security, Supplementary Security Income, and Food Stamps, are included in the personal 

income "add-ons" to GSP that yield the TTR estimates. 

In calculating TTR, failure to adjust for the federal 

offset for deductible state-local taxes parallels a deficiency of GSP and PCI. 

EXPORT-ADJUSTED INCOME 

Export-Adjusted Income (EAI) is an important 

theoretical approach to measuring fiscal capacity.16 No 

current estimates are presently available, however. 

EAI is founded explicitly on the concept of the state-local budget constraint. A state-local budget constraint 

embodies the choices for the public vs. private allocation of spending that are available to the taxpayers, 

given the fiscal capacity of that jurisdiction. There is a 

trade-off between disposable income and taxes that can 

be used to finance public services; more of one means 

less of the other, and any number of combinations are 

possible. 

Owing to the opportunities for "exporting" taxes, 

which themselves vary over jurisdictions, a dollar reduction in residents' disposable income due to state-local tax policy does not translate one-for-one into an extra dollar for public spending. Rather, a dollar lost 

yields somewhat more to the government for spending. 

This may occur in two ways: 

1. In taxing themselves, the residents of a jurisdiction may simultaneously also tax others 

who work, shop, or own income-producing assets (capital or land) in the jurisdiction. Owing 

to the government's ability to tax economic activity at its "point of origin" (i.e., the gross 

product of the jurisdiction), part of the tax burden can be shifted to nonresidents. It is generally illegal for a state or local government to apply different rates to taxpayers depending on 

their place of residence, but it is quite acceptable for a government to mix tax and nontax in- 
struments (state college tuition, for instance) 

in such a way as to shift a significant proportion of the burden to nonresidents. There are 

limits to this practice, though, because given 

sufficient incentive, nonresidents will choose 

to go elsewhere. 

Owing to the deductibility of the state and local 

taxes on income and property, a dollar in resident income taxed through one of these devices 

contributes a dollar to the state or local treasury, but also reduces the resident's federal income tax liability by some amount, depending 

on his or her marginal tax bracket and ability 

to itemize deductions. Thus if, for instance, 

the taxpayer is in the 30% bracket, a dollar 

of state-local spending costs him only 70 

cents. 

In both instances of tax exporting, a dollar of state-local 

revenue "costs" less than a dollar to residents. 

The ratio of tax revenue paid by nonresidents to total tax revenue has been termed the export rate. In 

other words, insofar as the tax burden is reflected in actual tax payments, the export rate reflects the extent to 

which this burden is "exported" to nonresidents of the 

jurisdiction. The combined export rate is estimated by 

analyzing the incidence of all relevant state and local 

taxes by geographic location. In practice, the export 

rate is assumed for the sake of convenience to be constant under changing levels of taxation. The combined 

export rate is estimated by analyzing the incidence of 

all relevant state and local taxes by geographic locati03.17 

The EAI concept represents a seminal economic 

approach to the fiscal behavior of state and local governments. However, estimation raises numerous theoretical issues of tax incidence on which consensus 

among professional economists is quite lacking. Making the index operational also presents impractically 

difficult data requirements that would be difficult to 

solve in a legislative and administrative setting. Therefore, it is generally agreed that EAI is not sufficiently 

developed for use in legislation. 

THE REPRESENTATIVE TAX SYSTEM 

AND THE 

REPRESENTATIVE REVENUE SYSTEM 

The Representative Tax System and its cousin, the 

Representative Revenue System, embody another approach to defining and measuring fiscal capacity.18 

Rather than using the economic definition of income, 

the RTS and RRS estimate the statutory bases (such as 

retail sales) that are commonly taxed (in one way or another) by state and local governments, weighing these 

revenue bases by the national average of governmental 

practice, i.e., using national average rates as weights. 

The thorny matters of comprehensiveness and tax 

exportation that confront the other capacity indexes 

also influence the design and use of the RTStRRS, but 

differently. In the latter, a comprehensive index of fiscal capacity is achieved by attempting to assemble a 

precise and exhaustive listing of statutory tax and nontax revenue bases. And in the RTS and RRS the exportation of taxes is reflected in the estimated level of each 

revenue base. For example, sales to tourists effectively 

export taxes by collecting some of the income of nonresidents. In the RTS and RRS the tourist trade is included in a state's total retail sales, which is used to calculate the base for general sales taxation. 

In this report as in its immediate predecessor, 

ACIR elevates the Representative Revenue System to 

full partnership with the older Representative Tax System. The RRS augments the RTS with a range of nontax revenue bases, chiefly that for user charges, 

amounting to more than a sixth of RRS revenues. 

THE USES OF 

FISCAL CAPACITY MEASURES 

In the introduction to this report, four primary 

uses for fiscal capacity indicators were cited: 

1) Regional Analysis, 

2) Regional Policy, 

3) Comparative Fiscal Policy Analysis, 

and 

4) Fiscal Equalization Policy. 

Each of these is now considered. The multiple uses 

of capacity measures are matched to the specific indices 

in Chart 1. Although arguments may be advanced relating virtually any index to any purpose, this report has 

pointedly limited the possible interconnections, not out 

of inflexibility, but in order to highlight the major distinctions-their comparative advantages and disadvantages among capacity indices with respect to their 

alternative uses. In the following section, an important 

technical basis for this strict differentiation is explored 

briefly. The final section on fiscal equalization raises 

the important conceptual issues. 

Regional Analysis 

USE OF GSP 

Gross State Product (GSP) is the state counterpart 

of GNP, which is typically employed to monitor 

changes over time in the economic well-being of countries. 

GSP measures the value of goods and services produced in each state. It is therefore the logical place to 

begin in any consideration of states' levels of economic 

activity, and how their fiscal or economic development 

policies may help or hinder this process. It is also possible to disaggregate the GSP total for any state to see 

how the expansion or contraction of each industry contributed to the estimated GSP. In certain respects, GSP 

has more to say about a state's economic progress than 

either unemployment or earnings data, because it 

shows the degree to which different industries contribute to their state's total output and taxable resources. 

GSP, in its sum and in its parts, is a productionbased measure of well-being. It is a comprehensive indi- 

cator of business conditions in a state, unlike state personal income. Personal income defines well-being in 

terms of the location of individuals-their residencesreceiving the income. 

GSP does not include the income of state residents 

that was earned from work or investment elsewhere. 

Nor does it include income due to cash transfers from 

the federal government. Consequently, it is incomplete 

with respect to the income of residents, and thus with 

respect to their ability to pay taxes to their own government, as noted above. 

USE OF RTSIRRS 

An alternative assessment of the economic wellbeing ofjurisdictions might focus solely on the levels of 

those resources that are commonly taxed. In the RTSI 

RRS approach to fiscal capacity, it is recognized that 

aggregate economic data may conceal information 

about the composition of these aggregates that is relevant to tax capacity. Broad economic indicators, such 

as GSP, do not directly reveal changes in common tax 

bases. 

USE OF TTR 

In the fullest sense of the term, citizens' economic 

well-being consists of both their personal income levels 

(which reflect their ability to purchase public services) 

and the ability of their governments to augment revenues through the taxation of nonresidents. A new alternative measure incorporating the potential for an important mode of tax exporting is the TTR index, which 

considers all income received by residents of the jurisdiction directly plus the income "produced" in that jurisdiction that would otherwise, but for state and local 

taxation, be received by nonresidents. Thus the TTR index attempts to provide a comprehensive measure of 

the well-being of persons by jurisdiction. 

In the same respect, consideration of personal income would be inadequate for the task of comparing 

the well-being of residents of different states. An important component of their well-being is their consumption of public services, which-given the possibility of tax exporting-may be only partially financed 

(and to different degrees) by their own tax payments. 

Regional Policy 

A fundamental tenet of economic theory, enshrined in Adam Smith's description of the pin factory, 

is the advantage of specialization. It is logical to view 

this in a regional context: It makes sense for areas to 

specialize in the production of those goods and services 

for which they enjoy comparative advantages. The corollary of this, however, carries a negative connotation. 

To the extent that geographic areas have comparative 

disadvantages and also have difficulty in switching 

from one type of industry to another (i.e., to the extent 

that there are "transition costs") economic stagnation 

and recession may be regionally focused. Difficult 

choices ensue over the question of investing public resources in troubled or declining areas or coping with 

the "costs" (monetary and otherwise) caused by out-migration. 

USING GSP 

A federal government may be concerned with regional economic policy, which may include anti-recessionary grants for economic stabilization or development. In this vein, the index of Gross State Product 

may be particularly useful. 

A distinction is implied above between chronic economic stagnation and transitory, though perhaps substantial, downturns. Stagnation is defined here as a 

long-standing condition that has been observed in areas of the United States, such as Appalachia and the Rio 

Grande Valley. What may prove to be more temporary 

reversals-the bust periods of boom-and-bust cyclescan be seen now in the "oil patch'' and in certain farming areas. Gross State Product measurement could be 

employed to monitor either difficulty.19 

It should be clear that state personal income would 

be misleading for either endeavor. It includes some 

items that have nothing to do with area business activity (such as transfers to residents from the federal government and capital income from assets located in 

other states), and excludes many other items that are 

essential features of local economic development (earnings of nonresidents, indirect business taxes, profits, 

etc.). 

Except for its focus on residents' income, the personal income index is not "place-oriented" in the sense 

that is required for regional economic policy. For policy 

concerned with the location of business activity (and 

the locations of a dearth of business activity), the location of income as produced (e.g., GSP) is the key concern. The location of income destinations (e.g., of those 

receiving income) also stimulates issues of fiscal equalization and government income security policy, but it is 

a somewhat different concern. 

As noted repeatedly in this report, from the standpoint of state and local governments, all types of income contained in GSP are not necessarily equal in importance (and, as noted, some sources of tax revenue 

are missing from GSP). The fiscal strains on a depressed region's government may themselves be of concern to the federal government. In this context it is useful to focus on commonly taxed resources, as well as the 

undifferentiated GSP aggregate. Here again, use of the 

RTS or RRS is an option. 

Comparative Fiscal 

Policy Analysis 

A preeminent question in comparing the fiscal policies of states and localities is the average burden of 

taxation, or "tax effort." Such a comparison is necessarily founded on the indicator of capacity to which actual tax revenues are compared in ratio form. Here 

again the analyst has a choice of the RTSIRRS indices 

or one of the macroeconomic aggregates. 
The choice of capacity index depends on whether 

the underlying issue is taxes collected (a) in light of the 

ability to pay taxes, as conceived in broad economic 

terms, or (b) relative to the statutory tax bases, as normally defined in state and local tax law. 

ABILITY TO PAY TAXES 

Ability to pay is a theoretical concept that nevertheless should be of interest to policymakers. It is clear 

that statutory bases do not encompass the entirety of 

potentially taxable money income accruing to firms and 

households. It is also clear that ability to pay one type of 

tax on one particular tax base is related to the size of 

other tax bases and to the levels of income not included 

in any tax base. For these reasons, the amount of revenue collected from any particular tax or set of taxes 

relative to residents' income broadly conceived is important information. 

On the other hand, when it is business activities 

(retail sales, income-generating property, production) 

that are taxed according to the location of "origin" of 

income being produced, the tax burden on these activities is a function of these business establishments' location, not of the residence of those supplying productive 

services or financial capital (stockholders, landlords, 

workers, etc.). The total tax burden relative to the total 

income of these parties does not depend on the location 

of their residences. Rather, it is the rates of taxation on 

the activities themselves that is the relevant point of 

comparison over jurisdictions. 

BURDEN ON 

STATUTORY TAX BASES 

Often a state official wants to compare the rate of 

taxation levied by his or her government to past rates, 

to those of neighboring states, or to the national average. The RTS or RRS help make these comparisons for 

both individual taxes and for revenue bases as wholes. 

(In this context, it is of no use to know the percentage of 

total revenue that is effectively derived from nonresidents or "exported." The accomplishment of EM is irrelevant here. Comparison of export rates says nothing 

about export potential, which entails the examination 

of particular types of taxes, including their rates, the 

size of the base in the jurisdiction, and the amount of 

revenue being collected relative to that base.) 

Another common use of fiscal capacity data concerns particular taxes relative to particular economic 

variables or statutory tax-base levels. This entails the 

use of disaggregated components of the capacity indices. To isolate taxes on business as a whole, a logical 

point of comparison would be revenue from taxes on 

business relative to Gross State Product or to the business tax bases in the RTS (nonresidential property, corporate income, severance, business licenses). To look at 

taxes on residential households, the appropriate comparison is revenue so derived relative to comprehensive 

personal income or to the "personal" tax bases of the 

RTS (residential property, general sales and excises, estate and gift, and personal income). Implicit in these 

monitoring efforts are difficult judgments about the final incidence of taxes and appropriate definitions of 

"business income." In any case, the data in this report 

are essential tools for such an endeavor. 

In the consideration of particular types of taxes, 

the RTS data are a natural starting point. The disaggregated figures on the various tax bases and revenues 

collected by states in total and per capita are shown in 

the appendix tables. It is possible to compare both the 

relative size of states' tax bases, the relative amounts of 

revenue collected from those bases, and the relative 

rates of tax on those bases. The issue of interstate tax 

competition would evoke such concerns, for example. 

Applicability of the other indices to such purposes 

depends on the task. TTR data, for instance, could be 

used to get a measure of the size of income and payroll 

taxation as a proportion of the total earnings of residents and nonresidents. Personal income tax revenue 

(from RTS tables) can be expressed as apercent of state 

personal income. 

The RTS revenue data in the appendices to this report can also be used to compare the tax mix in states: 

the extent to which different states focus their revenue 

collection on particular types of tax bases. Graphic representation of this can be found in Section 2. 

Fiscal Equalization Policy 

The operation of a federal system of government 

continually raises the question of the fiscal strengths 

and weaknesses of jurisdictions in that system, including their abilities to raise revenues in order to perform 

public functions. To deal with lower-level jurisdictions 

on an equitable basis, it is often held that the federal 

government must consider their relative fiscal capacities. Even among proponents, however, debate rages on 

how to equalize tax wealth and how to use indices of fiscal capacity. This report would be seriously remiss if it 

did not scrutinize fiscal equalization and the role of capacity measures in such policies. 

Federal policymakers may be interested in state 

fiscal capacity for a wide variety of reasons. Instances 

include a desire to distribute funds fairly or to collect 

them fairly, expanding the federal budget to do what 

state-local governments cannot do themselves, or contracting the budget to allow subnational governments 

to make their own fiscal choices. Indeed, even nonfiscal 

federal policy with governmental or economic consequences (such as regulatory actions) should be assessed 

in terms of interjurisdictional differences in fiscal capacity. 

The most prominent role for capacity measurement of states is, of course, as a component of formulas 

determining states' allocations under grant-in-aid programs, such as Medicaid and Aid to Families with Dependent Children. But concerns about fiscal capacity 

also have been raised in other contexts, such as federal 

disaster relief and the federal role in toxic waste cleanUP. 
The ACIR has related the concept of fiscal capacity 

to the discussion of the devolution of federal programs.20 Debate over national tax and budget policy 

often makes recourse to the measured fiscal flows between the federal government and the states, typically 

comparing grant assistance to federal taxes paid. These 

federal fiscal flows might usefully be considered in light 

of individual states' fiscal capacities. 

THE EQUALIZATION CONCEPT 

IN BRIEF 

Citizens subject to very different state-local fiscal 

systems may fall prey to this circumstance: Individuals 

in different taxing jurisdictions but at the same income 

level paying the same amount in taxes could receive 

widely disparate public services. From the perspective 

of the present report, there are two possible causes for 

this horizontal inequity-where those of equal incomes 

have access to unequal levels of public services. The two 

causes are (1) divergent per capita incomes of individual residents and (2) geographically divergent abilities 

of governments to export tax burdens. 

Unequal Incomes 

One taxpayer could simply live among richer or 

poorer neighbors than the other. When all pay the same 

percentage of their income in taxes-whether through 

income or property taxation-unequal per capita proceeds are realized in the different jurisdictions. The literature on school finance, and other analyses, cite examples of wealthy people living in areas with ample tax 

bases and so paying a relatively small percentage of income for broad public services.21 

Unequal Abilltles to 

Export Tax Burdens 

The second salient cause of tax-base differences is 

varying levels or types of business activity or property 

value in the different jurisdictions. This circumstance 

gives citizens and officials unequal opportunities to 

shift part of their tax burden to the absentee (i.e., nonresident) owners of the firms or properties. Such shifting is known as "tax exporting;" residents can "export" 

part of their tax burden to nonresident suppliers of productive services (e.g., the labor of commuting workers, 

the use of capital goods owned by nonresident stockholders or proprietors, the use of land owned by absentee landlords) that contribute to the level of goods and 

services produced within the geographical confines of 

the jurisdiction. 

In theory these two circumstances can give rise to 

overall economic inefficiency, as well as horizontal inequity. The inequity arises because fiscal conditions 

render taxpayers of identical individual economic characteristics unequal owing to their place of residence. 

Such a judgment is not entirely objective because it depends on defining "identical individual economic characteristics" to the exclusion of the choice of a place of 

residence. 

Inefliciency arises when the location decisions of 

households and firms are distorted by noneconomic 

considerations, that is, they move solely to minimize 

tax liability for a given level of public services. This occurs when potential migrants can benefit from the fortunate combination of low tax rates and high public 

service levels, as a consequence of ample tax bases. 

Such outmigration often leaves distressed communities in its wake, further shrinking these communities' 

tax bases. Migration of this sort, which incurs expense, 

is not economically efficient because it does not relocate production or residences to locations that, respectively, minimize production cost or maximize household satisfaction. Neither does it reflect a choice 

founded on the actual economic cost of public service 

spending.22 

The geographic location of a household's residence 

is itself an element in the determination of its overall 

well-being. If the intrinsic advantages of a location for 

households are saciently offset by fiscal differences, 

the household may choose to locate in a place that 

would only be second best in a world with no fiscal differences. Thus the individuals have been made worse 

off. The economy works less efficiently on that account. 

Among economists the inefficiency factor has historically been a subject of primarily theoretical interest. It is difficult to measure the efficiency loss and thus 

difficult to base a policy on such a phenomenon, if it exists. On the other hand, great political interest traditionally has been invested in the equity question. 

The argument for fiscal equalization that has just 

been recounted (though far from accepted universally) 

should not be exaggerated. Many differences in tax 

wealth are neither harmful nor avoidable. Some areas 

have weak tax bases because they are far from the centers of economic activity and some people choose remote locations. Some interstate differences in fiscal capacity-which may reflect unavoidable readjustments 

of the economy and population-need not detract from 

the ability of state and local citizens to provide themselves with a level of public services judged acceptable. 

This is not the place to debate the arguments for 

and against fiscal equalization, much less to debate the 

choice of one equalization policy or another. So long as 

federal actions are designed to take account of interstate differences in tax wealth, capacity indices will be 

necessary. The debates on equalization policy and capacity indices have, unfortunately, generally overlooked the fact that different policies for fiscal equalization may lead to employing different measures of fiscal capacity. 

EQUALIZATION POLICY 

Two prominent varieties of equalization policy underlie the capacity measures presented in this report. 

These choices are not accidental. They, in fact, figure 

strongly in the wide range of equalization grants used in 

the United States, Australia, and Canada. Both policy 

varieties are aimed at equalizing the potential amounts 
of per capita spending on public services in different dictions a level of revenue at one specific level of tax 

states by endeavoring to establish a "floor" level of tax- burden on residential income, comprehensively deable resources for the poorest jurisdictions. fined-here chosen to be the national average. A second 

type of equalization policy-commonly referred to as 

Equalizing Eff ectlve power equalization-guarantees local jurisdictions a 

Per Capita Tax Bases per capita level of taxable resources in excess of their 

The first policy motive of interest, which pertains 

to the Representative Tax System and Representative 

Revenue System, is the equalization of interjurisdictional tax bases. Here the objective is to supplement 

commonly taxed resources in states having below national-average levels of these resources. The grant allocation might, for instance, depend on the difference between the revenue the state would collect if it set national average rates and the revenue a state with average size tax bases would collect with those same (i.e., 

national average) rates. 

For example, suppose states had a single tax base 

that was taxed on average nationally at the rate of 10%. 

If Mississippi had an RTS tax capacity of 75, and Minnesota had a capacity at the national average of 100, 

Mississippi would receive federal funds equal to the difference between 10% of its own tax base and 10% of 

Minnesota's. 

For the local areas, where property taxation is the 

primary source of tax revenue for localities and school 

boards, the most commonly employed capacity measure has been assessed valuation of property per capita. 

At the state level, there are many tax bases in use, and 

the problem of adding apples and oranges arises-the 

apples and oranges being different sources of tax revenue, such as retail sales, personal income, and excises. 

One obvious way to "add" up these disparate elements 

to obtain a comprehensive measure of a state's tax capacity is to weight tax bases according to the national 

average rates at which they are taxed, as in the RTS/ 

RRS approaches. Again, the idea of this form of equalization is that states are given access to equal levels of 

taxable resources. 

In practice, the national government may not wish 

to appropriate enough funds to perform complete 

equalization in the above sense. In that case, the 

amounts needed for 100% equalization could be used to 

calculate state shares of the grant appropriation. 

(Strictly speaking, such partial allocations establish an 

effectively different equalization policy.) The grant 

program may award funds to all states, which requires 

determining shares of a fixed sum using the index of all 

states simultaneously. 

The allocation of this variety of equalizing grant 

need not depend on how much the state actually decides 

to collect in taxes, nor on how it would use the grant 

funds. Under these circumstances, the recipient government could, for instance, use its grant to finance an 

equivalent tax cut. The grant would then be understood 

as general, unconditional fiscal assistance. 

The type of fiscal equalization policy discussed in 

this section is commonly referred to as a foundation approach to equalization because it guarantees local jurisbwn ifit is below the national standard that is set. Thus, 

the more such a jurisdiction taxes its own base, the 

more it is compensated in grant funds. Its "power to 

tax" is equalized for any rate of tax it chooses to implement, in contrast to foundation equalization, which 

only goes so far as to grant jurisdictions a baseline level 

of resources that holds regardless of the jurisdiction's 

own tax policy. The power equalization policy requires 

that some kind of measure of jurisdictions' actual tax 

effort be included in the equalization formula. 

The controversy over the appropriate approach is 

beyond the scope of this report. As a general matter, 

the foundation approach is more attractive to lowspending jurisdictions because it provides a guarantee 

regardless of the jurisdiction's spending level, whereas 

the power approach would be more desirable to higherspending states. From the federal grant-agency standpoint, the foundation approach is aimed primarily at 

ensuring minimum spending results, while the power 

approach endeavors to increase spending for some purpose across all states. In any case, the effective capacity 

measure renders rich states equal to poor and makes 

choices over approaches solely a function of preferences as to public services, as opposed to ability to pay 

for them. 

Equallzlng Residents' 

Ability to Pay Taxes 

An alternative equalization motive is to guarantee 

jurisdictions an equal amount of public revenue, given 

hypothetically uniform tax burdens on the residents of 

these jurisdictions. Again, the power equalization variant of this would be to guarantee equal per capita tax 

bases for any given state-determined tax rate by supplementing the bases of below-average states with federal grant funds. This requires comparing the amounts 

of total revenue each jurisdiction's government would 

be expected to collect if its residents either (a) contributed equal proportions of their total income for public 

spending (the foundation approach), or (b) had an average level of taxable resources available to tax (power 

equalization), in either case compensating those jurisdictions by the amount they fall beneath the average or 

standard level adopted as policy. 

For example, if the average result of residents in 

states taxing themselves at the rate of 10% of their total 

income is $1,000 per capita in tax revenue (including 

revenue from tax exporting), and the average level is 

the standard adopted, the states that would collect less 

than $1,000-were they to tax their own residents at 

the 10% rate-would receive the difference in a grant. If 

two jurisdictions had equal per capita personal income 

levels, the revenues that they could raise could still dif- 
fer significantly because of different opportunities for 

tax exporting. 

Once again it is quite possible that the national government will wish to give all states grant funds, and/or 

that 100% equalization (full compensation up to the 

standard) will not be achieved. In that case, the estimated national revenue from the 10% rate could be 

used to determine relative shares of federal appropriations. 

Equalizing residents' taxpaying ability is an alternative route to achieving neutrality in location decisions of firms and households and to granting some degree of fiscal relief to poorer jurisdictions. 

Candidate capacity measures for the second equalization policy are Total Taxable Resources and ExportAdjusted Income.23 Both of these indices provide estimates of the tax revenue available to jurisdictions with 

identical tax burdens on their residents, given certain 

assumptions and qualifications. 

A key distinction between the two equalization 

policies is that the goal underlying the RTSIRRS can be 

said to apply to governments, while the other is focused 

on the individual residents of jurisdictions.24 The issue 

here is the appropriateness of a distinction between the 

ability of residents to pay taxes and the ability of their 

government to collect them. The ability of residents to 

pay taxes is understood in this analysis to depend on 

their comprehensive income and their ability to export 

part of their tax burden. Two key determinants of this 

taxpaying ability are thus the level of resident income 

and the rate at which residents can shift their taxes to 

nonresidents. On the other hand a government's ability 

to collect taxes, as measured by the RTSIRRS, depends 

on the explicit fiscal policies of the states as a whole and 

the composition of taxable resources, apart from the 

split in such resources between resident voters and 

nonresident taxpayers. 

Recalling that a key purpose of equalization is to 

equalize potential public spending (i.e., the ability to 

spend), or at the least to raise potential spendinglevels 

in jurisdictions that are the farthest beneath the national average, each index responds differently to the 

question of how the composition of taxable resources 

affects public spending, aside from preferences for public services. 

In the TTRJEAI framework, the primary factor is 

the resident taxpayers' share of total tax revenues; the 

lower their share, the more likely they are to vote for 

public spending, given the same resident income, according to the TTR and EAI indices. In the RTSIRRS 

framework, governments will spend more if their total 

tax base has proportionately more of those types of tax 

bases which are taxed at relatively higher national average rates, regardless of resident income's proportional role in total resources. 

To illustrate this distinction, suppose two states 

have the same per capita income, but one consists entirely of wages while the other is half wages and half the 

profits (rental income) of oil wells. TTR and EAI will 

register equal capacity for these two states, while the 

RTSIRRS will predict that the oil state will spend more 

(other things equal) and thus should receive a smaller 

share of grant funds under an equalization program. On 

the other hand, consider two states with equal RTS 

scores and equal state personal income, where one state 

is able to export more of its taxes than the other. TTR 

and EAI will "predict" (so to speak) that the higher exporter will spend more and thus should get less money 

under the federal grant program. The RTS will make no 

such distinction. Both cases are eminently plausible. 

Economic theory does not point decisively to either approach as indubitably correct at this point in time. In 

fact, the theory is insufficiently well-developed to encompass both types (exporting and the composition of 

taxable resources) of phenomena. 

Thus the debate over the superiority of the choice 

of equalization concept and, consequently, capacity 

measurement hinges in large part on the theoretical 

question of what determines the level of state and local 

spending on public services-quite apart from citizen 

preferences for such services. 

An example shows why it is not possible to perform 

both types of measurement-capacity given common 

resident tax burdens or capacity in light of diverse 

types of income and tax bases-in the same index. This 

also emphasizes the essential difference between the 

two type of measures: TTWEAI vs. RTSJRRS. Considering two jurisdictions with no tax exporting, assume 

that they have equal per capita income levels. In terms 

of residents' ability to pay taxes, which is consistent 

with the TTR and EAI approach, the two jurisdictions 

are identical. However, supposing the composition of 

their incomes differed (and it was observed that some 

types of income sources, such as wages, were more easily taxed than other types, such as Social Security payments) it would be concluded in this light that their fiscal capacity also differed. (A difficulty here is that "ease 

of taxation" has never been defined precisely.) 

But to alter the capacity assessment according to 

the "taxability" of types of income or the size of statutory tax bases violates the first principle of focusing on 

the ability of residents to pay taxes. The wage earner 

parts with his or her tax dollar with as much sorrow as 

the payer of a tax on transfer payments. If their incomes are equal, they should be regarded as taxpaying 

equals. How "easy" it is for their government to tax one 

as opposed to the other is a separate question. 

Theoretically, it should be possible in capacity 

measurement to discriminate among types of nonresident incomes according to the mobility of the tax bases 

associated with these incomes. In other words, a nonresident-owned oil well is less mobile than a nonresident wage earner, so an increase in rates for both may 

yield differing increases in revenue. Although the analytical machinery for estimating these effects is not well 

advanced, it is at least conceptually possible to inject 

greater realism in to an abili ty-to-pay approach that 

takes account of tax exporting. 
NOTES 

'The Bureau of Economic Analysis of the US. Department of Commerce provides personal income data ona yearly basis for regions, 

states, metropolitan areas, and counties, including income components by type and by major industrial category, in the series Local Area Personal Income. 

2See "Experimental Estimates of Gross State Product by Industry", 

Bureau of Economic Analysis, Staff Paper 42, US. Department of 

Commerce, May 1985. 

%ee "The Total Taxable Resources Definition of State RevenueRaising Ability" by Max B. Sawicky, "Experimental Estimates of 

Total Taxable Resources" by John T. Carnevale Office of State and 

Local Finance, US. Department of the Treasury, in FederalState-Local Fiscal Relations, Technical Papers, Volume 1, September 1985, and "Gross State Product: A Measure of Fiscal Capacity," by Robert H. Aten, in Measuring Fiscal Capacity, H. 

Clyde Reeves ed., Oelgeschlager, Gunn &Hain, Inc., forthcoming. 

4See "Improved Measures of State Fiscal Capacity: Short-Term 

Changes in the PC1 and RTS Indices" by Stephen M. Barro in Federal-State-local Relations. 

5See Appendix E in ACIR. Measuring State Fiscal Capacity, 

(M-150). 

6"Measuring Metropolitan Fiscal Capacity and Effort: 1967-1980," 

ACIR, Staff Working Paper 1, July 1983. 

7~ee "Local Government Fiscal Capacity Measures: A Profile of 

State Studies," by the Texas Advisory Commission on Intergovernmental Relations, in Federal-State-local Fiscal Relations. 

?3tephen M. Barro, "State Fiscal Capacity: An Assessment of Measurement Methods," prepared for the US. Department of Housing 

and Urban Development, April 1984. 

gLetter to Robert W. Rafuse, Office of State and Local Finance, US. 

Department of the Treasury, March 1, 1985. 

10"Effective" refers to the standardized base, allowing inte rjurisdictional comparisons. Because the bases used to calculate property 

and income taxes (for instance) vary so much from place to place, 

the statutory tax rate is misleading for inte jurisdictional comparisons. Note that "effectiven tax rates do not refer to the ultimate burden of taxation (in technical terms, the incidence), when 

taxes are passed on from businesses to consumers, for example. 

Export-Adjusted Income is a microeconomic concept founded on 

the theory of the state-local budget constraint. It is an effort to 

represent the actual choices facing individual decision-making 

voters; in particular, the budget constraint is a way of describing 

the diverse combinations of disposable income (i.e., net of federal 

taxes) and state-local tax revenue that are possible in a jurisdiction. 

I2As noted in "State Fiscal Capacity: An Assessment of Measurement Methods," by Stephen M. Barro, prepared for the US. Department of Housing and Urban Development, April 1984. 

13See Robert D. Reischauer, Rich Governments-Poor Governments, unpublished manuscript, The Brookings Institution, 

Washington, DC, 1974, and Aten. 

141n particular, see Chapter VIII of Federal-State-Local Relations, 

and Carnevale, and Sawicky in Technical Papers, Volume 1. 

1 SCarnevale. 

161n particular, see Barro, 1984, and Ladd, et al. 

17For an application to US. cities, see Ladd, et al. 

le~CIR, Measures of State and Local Fiscal Capacity and Tax Effort, M-16, Washington, DC, US. Government Printing Office, 

1962. See also, Measuring the Fiscal Capacity and Effort of State 

and Local Areas, M-58, 1971; ACIR, Tax Capacity of the Fifty 

States: Methodology and Estimates, M-134, March 1982; ACIR, 

1981 Tax Capacity of the Fifty States, A-93, September 1983; 1982 

Tax Capacity of the Fifty States, M-142, May 1985; ACIR, 1983 Tax 

Capacity ofthe Fifty States, M-148, April 1986; and ACIR, Measuring State Fiscal Capacity, M-150, September 1986. 

191t would be possible to calculate GSP on a quarterly basis for the 

purpose of reflecting in a sensitive way the fluctuations of income 

in areas prey to volatile economic developments. For the concern 

with chronic below-average development, however, a yearly index 

would be sufficient. 

20DevoluingFederal Program Responsibilities and Revenuesources 

to State and Local Governments, A-104, ACIR, Washington, DC, 

US. Government Printing Office, March 1986. 

21 See, e.g., John Coons, William Clune, 111, and Stephen Sugarman, 

Private Wealth and Public Education, Haward University Press, 

Cambridge, MA, 1970. However, some analysts have identified 

long-term forces tending to reduce such horizontal inequities. 

The desire to live in communities with low tax rates yet high public service levels can, for example, drive up land prices in these fortunate locations. 

22Some of the migrationjust described is, however, self-limiting. All 

else equal, migration into communities with high tax bases will 

bid up the cost of living and working there, reducing these areas' 

attractiveness. 

23For a theoretical motivation for EM, see Barro, 1984. TTR is introduced in Treasury, 1985, in Sawicky, and in Carnevale. 

24See "A Commentary on Alternative Approaches to the Measurement of State and Local Fiscal Capacity," by Douglas Clark in 

ACIR (M-142). 
Appendix B 

Tax Base Definitions, Tax Bases, 'and 

Sources for the1 985 RTS and RRS 

Fiscal Capacity Estimates 

In this appendix, each tax is defined, the tax base or reau: State Government Tax Collections in 1985, Govtax base proxy is described, and data sources are listed. ernmental Finances in 1984-85, and State Government 

The tax definitions are those used by the U.S. Depart- Finances in 1985. Some unpublished data on various 

ment of Commerce, Bureau of the Census. With few ex- tax components were provided by the Census Bureau 

ceptions, all the data on the states and local tax collec- and state revenue departments. 

tions were supplied by publications of the Census BuRTS BASES 

1. General Sales or Gross Receipts Taxes 

Definition: Sales or gross receipt taxes generally applicable to all types of goods and services. 

Taxes imposed distinctively upon sales of selected commodities are reported separately under selective sales 

taxes. West Virginia's sales tax receipts (as reported by the Bureau of the Census) from a "business and occupations" tax on the coal industry were deleted from the sales tax and apportioned to the severance tax. 

Tax Base: General retail sales of retail trade and selected service businesses. 

All establishments engaged in selling merchandise for personal or household consumption are included. 

Service businesses included here are hotels and motels; amusement and recreation services including motion pictures; and personal services, such as laundries, and beauty and barber shops. 

Excluded from this base are sales of food and drugs which are commonly tax exempt. Because of data limitation, sales of gasoline have not been excluded, although they are usually taxed separately. In general, states 

have retail sales and gross receipts tax bases broader than the one defined here because they cover more 

transactions, such as public utility sales, wholesale trade or construction contractors. As a result, the rate 

used for the representative tax system is higher than the actual effective rate. 

State-by-state sales of selected service industries for 1985 were estimated by allocating the 1985 national total according to the 1982 shares adjusted for the change in personal disposal income between 1982 and 1985. 

Sources: 

Retail Sales (1985): Sales and Marketing Management Magazine, 1986 Survey of Buying Power, 

New York, NY, 1986. 

Service Sales (1982): U.S. Department of Commerce, Bureau of the Census, Census ofBusiness, Selected Services-Area Statistics (1982), Washington, DC, 1984. 

Service Sales (1985): U.S. Department of Commerce, Bureau of the Census, Current Business Reports, 1985 Service Annual Survey, Washington, DC, August 1986. 
Disposable Income (1985): U.S. Department of Commerce, Bureau of Economic Analysis, Survey of 

Current Business, Washington, DC, August 1986. 

2. Selective Sales and Gross Receipts Taxes (Tax levies selectively imposed on particular kinds of 

commodities or business.) 

2A. Motor Fuels 

Definition: Selective sales and gross receipts taxes on gasoline, diesel oil, and other fuels used in motor vehicles, including aircraft fuel. 

TaxBase: Total quantity of motor fuel consumed in gallons; starting this year net of use by subnational governments, which are not subject to state-local taxation. 

Source: U.S. Department of Transportation, Federal Highway Administration, Selected Highway Statistics 

and Charts-1985, Motor Fuel Use-1985, Washington, DC, 1986. 

2B. Alcoholic Beverages Definition: Selective sales and gross receipts taxes on alcoholic beverages. 

Tax Base: The overall tax base is based on three components of consumption (beer, wine, and distilled spirits), each of which was separately estimated. The tax burden on each of these categories of alcoholic beverages was estimated by using data supplied by the Distilled Spirits Council in conjunction with Census data 

for all alcoholic beverages. 

Sources: 

Tax Burden by Class of Beverage: Distilled Spirits Council of the United States, 1985-1986 Public 

Revenues from Alcohol Beverages, Washington, DC, 1986. 

Distilled Spirits Consumption: Distilled Spirits Council of the United States,Annual Statistical Review 1985, Washington, DC, 1986. 

Beer Consumption (1985): United States Brewers Association, Brewers Almanac 1985, Washington, DC, 1986. 

Wine Consumption (1985): Wine Institute, unpublished data, San Francisco, CA. 

2C. Tobacco Products 

Definition: Selective sales and gross receipts taxes on tobacco products, including related taxes on cigarette tubes and paper and synthetic cigars and cigarettes. 

Tax Base: Number of packages of cigarettes sold. 

Source: The Tobacco Institute, The Tax Burden on Tobacco, Volume 21,1986, Washington, DC. 

2D. Insurance 

Definition: Taxes imposed distinctively on insurance companies and measured by gross premiums or adjusted gross premiums. 

Tax Base: Direct written premiums or premium receipts by state for life, health, property, and liability insurance. 

Sources: 

Life Insurance: American Council of Life Insurance, Life Insurance Fact Book Update (1985), Washington, DC, 1985. 

Health Insurance: Health Insurance Association of America, unpublished data, New York, NY, 

1986. 

Blue Cross and Blue Shield Insurance: The National Underwriter Company, 1985, Argus Health 

Chart, 87th ed., Cincinnati, OH, 1985. 

Property and Liability Insurance: Insurance Information Institute, 1985-86 PropertylCastuzlh, Fact 

Book, New York, NY, 1985. 

2E. Public Utilities 

Definition: Taxes imposed distinctively on public telephone, telegraph, power and light companies, and 

other public utilities, including local government-owned utilities. These taxes are levied on gross receipts, 

gross earnings, or units of service sold. Public utility license taxes are also included in this category. 

Tax Base: Gross revenues of all electric, gas, and telephone companies. Electric and gas revenues are for all 

publicly owned and private companies. Because telephone revenues for the Bell System and the independent 

telephone companies are not available on a state-by-state basis, the national total of telephone revenues was 
allocated to the states according to a weighted average of the number of access lines and the number of toll 

calls. 

Sources: 

Gas Utility Revenues: American Gas Association, Gas Facts-1985, Arlington, VA, 1986. 

Electric Utility Revenues: Edison Electric Institute, Advance Release of Data forthe 1985Statistical 

Yearbook of the Electric Utility Industry, Washington, DC, 1986. 

Telephone Revenues and Number of Telephones: United States Telephone Association, Telephone 

Statistics, 1986, Washington, DC, July 1985. 

AT&T Revenues: American Telephone and Telegraph Company, 1985Annual Report, New York, 

NY, 1986. 

Number of Local Calls and Toll Calls: Federal Communications Commission, Statistics of Communications Common Carriers-1985, Washington, DC, 1986. 

2F. Parimutuels 

Definition= Taxes measured by amounts wagered at race tracks, including "breakage" collected by the government. 

Tax Base: Parimutuel turnover from horse and dog racing and jai alai. 

Source: National Association of State Racing Commissioners, Parimutuel Racing, 1985, Lexington, KY, 

1986. 

2G. Amusements 

Definition: Selective sales and gross receipts taxes on admission tickets or admission charges and on gross 

receipts of all or specified types of amusement businesses (including gambling operations). License taxes on 

amusement business are also included. 

Tax Base: Receipts of establishments that provide amusement and entertainment services. Movie theater 

receipts and casino revenues are included. Gambling receipts for hotels are classified in the general sales tax 

base. 

State-by-state 1985 data for amusement receipts derived by allocating the 1985 national total according to 

the 1982 state shares adjusted for the change in disposable personal income between 1982 and 1985. 

Sources: 

Amusement Receipts (1982): U.S. Department of Commerce, Bureau of the Census, Census ofBusiness, Selected Services-Area Statistics (19821, Washington, DC, 1984. 

Amusement Receipts (1985): U.S. Department of Commerce, Bureau of the Census, Current Business Reports, 1985 Service Annual Survey, Washington, DC, August 1986. 

Disposable Income (1985): U.S. Department of Commerce, Bureau of Economic Analysis, Survey of 

Current Business, Washington, DC, August 1986. 

3. License Taxes (Taxes levied at a flat rate for either raising revenue or regulation.) 

SA. Motor Vehicles 

Definition: License taxes imposed on owners or operators of motor vehicles for the right to use public highways, including charges for registration and inspection and vehicle mileage and weight taxes on motor carriers. 

Tax Base: Number of registrations for private and commercial vehicles. The base for this tax was allocated 

to the states according to (1) the number of automobiles and (2) the number of trucks registered. The total 

tax revenue reported by the Census Bureau was apportioned to these two classes of vehicles according to 

data supplied by the Federal Highway Administration. 

Sources: 

Tax Burden on Automobiles and Trucks, and Automobile and Truck Registrations: U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 1985, State MotorVehicle and Motor Canier Tax Receipts, 1985, Table MV-2; and State Motor Vehicle Registrations, 

1985, Table MV-1, Washington, DC, October 1986. 

SB. Motor Vehicle 0 erators 

Definition: Licensing or the privilege of driving motor vehicles, including both private and commercial licenses. F 

Tax Base: Estimated number of licenses in force. 
Source: U.S. Department of Transportation, Federal Highway Administrations, Highway Statistics 1985, 

Estimated Licensed Drivers, by Sex, 1985, Table DL-lA, Washington, DC, October 1986. 

3C. Corporations Definitzon: Franchise license taxes, organization, filing and entrance fees, and all other license taxes which 

are applicable, with only specified exceptions, to all corporations. 

Tax Base: Number of corporations within a state, including nonprofit corporations. 

Source: U.S. Department of the Treasury, Commissioner and Chief Counsel, Internal Revenue Service, 

Highlights of 1986, Washington, DC, 1987. 

3D. Alcoholic Beverages 

Definition: License taxes for manufacturing, importing, wholesaling, and retailing alcoholic beverages 

other than those based on volume or value of transactions or assessed value of property. 

Tax Base: Number of retail licenses issued for the sale of distilled spirits. The number does not include licenses for the exclusive sale of beer and wine. Series has changed slightly from that used in previous years; 

comparability is not affected. 

Source: Distilled Spirits Council of the United States, Annual Statistical Review 1985, Washington, DC, 

1986. 

3E. Hunting and Fishing Licenses 

Definition: Commercial and noncommercial hunting and fishing licenses and shipping permits. 

Tax Base: Total number of fishing and hunting licenses, tags, permits and stamps issued. 

Source: U.S. Department of Interior, Fish and Wildlife Service, 1985 Hunting and Fishing License Statistics, Washington, DC, 1986. 

4. Individual Income Tax 

Definition: Taxes on individuals measured by income and taxes distinctively imposed on special types of income (e.g., interest, dividends, intangibles, etc.). 

Tax Base: Total federal income tax liability of state residents, adjusted for deductibility of state and local 

income, sales, and property taxes. Federal income tax liability is essentially the total amount of federal income taxes paid by individuals after credits. Because it is prevailing state practice to allow income tax credits 

for taxes paid to states other than the state of residence, residency adjustments were made to account for 

both the income taxes collected from nonresidents and credits allowed to residents for taxes paid to other 

states. The federal income tax liability for each state was adjusted by the ratio of the BEA residency adjustment to resident personal income. 

Sources: 

Income Tax: U.S. Department of the Treasury, Internal Revenue Service, Statistics of Income Bulletin, 1985 Income Tax Returns, Preliminary Data, Washington, DC, Winter 1986-87. 

Residency Adjustment: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of 

Current Business, Washington, DC. 

Deductibility Adjustment: 1982 gross savings for deductibility from ACIR Discussion Draft, Federal 

Income Tax Deductibility of State and Local Taxes, June 1985, projected to 1985. Growth in deductible taxes from Government Finances in 1984-85; 1985 total deducted from President's Budget for 

FY 1986, Special Analysis G. 

5. Corporate Income Tax 

Definition: Taxes on corporations and unincorporated businesses measured by net income. 

Tax Base: Total national net income for each 35 Standard Industrial Classification (SIC) industries was allocated to the states according to the following procedure: 

Nationwide net corporate income (1985) was estimated for each of the 35 SIC industries by using 

profit data (BEA) for each industry. For each industry, the typical three factor formula-one-third 

payroll, one-third property, one-third sales by destination-should be used to allocate each industry's national income to the states. However, data for corporate property and sales by state are not 

available and proxies had to be used to estimate these factors in the formula for each industry. Payroll data by industry, by state, and retail sales data formed the basis for the proxies which were utilized. 

For the property factor of the formula, property was assumed to be distributed identical to payroll. 

Hence, the payroll factor was used as a proxy for property; thus payroll was double-weighted in the 
formula. State data on the manufacturing industries indicate that there is a high correlation between the payroll and gross assets of industries across states. 

Because corporate sales by destination are unlikely to mirror either payroll or retail sales, neither of these proxies was used to estimate the sales factor in the formula. Instead, through use of 

payroll breakdowns by industry by state and anational input-output table for 1977, aproxy for sales 

was derived according to the following procedure: 

Let: 

X(i,c) 

Y(cj) 

Then: 

Where A(i j) 

Now let: 

S(wj1 

Then: 

Where K(w,i) 

The percentage of the dollar value of industry i's output that is commodity 

C. 

The percentage of the total dollar value of commodity c used as an input in 

industryj. Where c is not used as an intermediate input, but is purchased by 

consumers, "personal consumption expenditures" constitute the 36th industry. 

36 

2 [X(i,c) x Y(cj)l = A(i j) 

c=l 

the percentage of industry i's output purchased by industryj. Whenj is personal consumption expenditures, A(i j) is the amount of industry i's output 

that is sold as final goods. 

the percentage of industry j's payroll located in state w. Where industry j is 

personal consumption expenditures, let j equal state w's share of total national retail sales. 

36 

C [S(wj) x A(i j)] = K(w,i) 

j=l 

the share of industry i's output sold in state w. 

Thus, K(w,i) is used as a proxy for the sales-by-destination factor in the three-factor formula. 

The three-factor formula is applied to the estimated total income for each'industry to determine 

each state's income apportionment and summed over all industries to derive each state's total corporate income tax base. 

Let I(i) = Total income for industry i. 

Then: 

= The income of industry i apportioned to state w. 

35 

And: I(w) = 2 I(w,i) 

i= 1 

= The total corporate income for all industries allocated to state w. 

Sources: 

Corporate Profits (1985) By Industry: U.S. Department of Commerce, Bureau of Economic Analysis, 

unpublished data. Definitions changed slightly from those in previous years. Comparability is not 

affected. 

Payroll (1985): U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current 

Business, Washington, DC, August 1986. 

Input-output Tables (1977): U.S. Department of Commerce, Bureau of Economic Analysis, Survey 

of Current Business, Washington, DC, May 1984, Tables 1 and 2. 

6. Property Taxes. The property tax is separated into four different components-residential, commercial, 

farm, and public utility. Each is estimated individually. The allocation of total property taxes among the various 
classes of property are approximations based on assessed values for 1981, except for farm property taxes which are 

annually estimated by the Department ofAgriculture. The Census Bureau does not provide a break-down of property 

tax payments by class of property. 

6A. Residential Property Definition: Taxes conditioned upon the ownership of single family houses not on farms and multifamily 

residences excluding motels and hotels. Residential property tax rates are applied to the combined value of 

buildings and land: The residential share of the property tax burden was estimated by the residential share of 

assessed value of the property in 1981. This share was applied to the total of 1985 property tax collections, after deduction of farm property taxes to derive residential property tax receipts. 

Tax Base: Estimated residential property values for single family and multifamily residences: 1985 property values were estimated by extrapolating the 1981 estimated market value of each state's residential 

property to 1985 based on the change in the average purchase prices of single family dwellings between 1981 

and 1985. 

To the estimated market value of existingresidential property (19851, the value of newly constructed housing for 1985 was added. The value of newly constructed housing was inflated so as to reflect the value of the 

associated land. 

Sources: 

Property Values (1981): U.S. Department of Commerce, Bureau of the Census, 1982 Census of Governments, Taxable Property Values and Assessments-Sales Price Ratios, Washington, DC, February 

1984. 

Single Family Home Purchase Prices 1981-85: Federal Home Loan Bank Board, Mortgage Interest 

Rate Survey, Characteristics of Conventional Fully Amortized First Mortgage Loans Closed on Single Family Homes, unpublished, Washington, DC, 1986. 

Value of New Residential Constmtion Contracts: U.S. Department of Commerce, Bureau of the 

Census, Statistical Abstract of the United States, 107th ed., Table No 1294, Construction Contracts-Value, by States, Washington, DC, 1986. 

Value of Site Relative to Total Home Value: US. Department of Housing and Urban Development, 

Federal Housing Administration, FHA Homes 1985-Data for States and Selected Areas on Characteristics of FHA Operations Under Section 203, Washington, DC. 

6%. Commercial and Industrial Property Definition: Taxes conditioned upon the ownership of commercial and industrial property (excluding public 

utilities) based on the value of land, buildings, equipment, inventories, and depletable assets such as the 

value of mineral property, oil and gas wells, other natural deposits, etc.. The tax burden on business property 

was derived by applying the percentage of 1981 gross assessed value of business property to the total of 1985 

property tax collections. 

Tax Base: Estimated net book value of assets including inventories, depreciable assets, depletable assets, 

and land of corporations. Property values for partnerships and other unincorporated businesses, farms, and 

public utilities is not included. Railroad property is included. 

The national 1985 net bookvalues for 35 SIC industry groupings were estimated by applying to the 1982 values the change between 1982 and 1985 in new bookvalues of property assets. Because data are not available 

for transportation, finance, or service industries, their book values were inflated by the changes in their respective total payrolls between 1982 and 1985. The estimated corporate property values for each industry 

were allocated to the states according to each state's share of each industry's payroll. The sum of all the individual industry property values was used as an estimate of each state's commercial-industrial property tax 

base. 

Sources: 

Book Value ofAssets (1982): U.S. Department of Treasury, Internal Revenue Service, Corporation 

Source Book of Statistics of Income, Washington, DC, 1985. 

Book Value ofAssets, Selected Industries (1982-85): U.S. Census Bureau, Quarterly Financial Report for Manufacturing, Mining and Trade Corporations, Washington, DC, 4th quarter, 1984, and 

4th quarter, 1985. 

Payroll by Industry by State: U.S. Department of Commerce, Bureau of Economic Analysis, Survey 

of Current Business, Washington, DC, August 1986. 

6C. Farm Real Estate 

Definition: Taxes conditioned on the ownership of farm realty and farm personal property such as livestock, crop inventories, and farm equipment. 
Tax Base: Estimated value of farm land and buildings. 

Sources: 

Fan Values: U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the 

United States, 107th ed., Table # 1135, Washington, DC, 1986. 

Farm Property Taxes: U.S. Department of Agriculture, Economic Research Service, Washington, 

DC, unpublished data. 

6D. Public Utilities 

Definition: Taxes conditioned on investor ownership of public utilities such as gas, electric, and telephone 

cohpanies. Public utility property tax rates are applied on the combined value of buildings, equipment, material, and land. 

Tax Base: Because individual state data are not available, each state's public utility property tax base was 

based on a proxy measure consisting of the sum of gas, electric, and telephone company nonfinancial assets, 

estimated as follows: 

1. Gas company net assets were allocated to each state according to its share of the total number of 

miles of gas pipeline. 

2. Electric company net assets were allocated to each state according to its share of the total investor-owned electrical generating capacity. 

3. Telephone company net assets were allocated to each state according to its share of the total number of access lines. 

Sources: 

Gas Company NetAssets and Gas Pipeline Mileage: American Gas Association, Gas Facts, 1985, Arlington, VA, 1986. 

Electric Company Net Assets and Electrical Generating Capacity: Edison Electric Institute, 1985 

Statistical Yearbook of the Electric Utility Industry, Washington, DC, 1986. Reporting of assets is 

changed from that in previous years. Comparability is not affected. 

Bell System Net Assets: American Telephone and Telegraph Company, 1985Annwtl Report, New 

York, NY 1986. 

Independent Telephone Company Net Assets and Number of Telephones: United States Independent Telephone Association, Telephone Statistics I986 for the Year 1985, Washington, DC, July 1986. 

7. Estate and Gift Taxes 

Definition: Taxes imposed on the transfer of property at death, in contemplation of death, or as a gift. 

Tax Base: Federal estate and gift tax liability. Because the federal estate laws are applied uniformly over 

the states, a given state's liability should reflect the size of its base. This treatment can also be justified because many states limit their estate taxes to the amount of credit permitted by the federal government for 

the state taxes. 

Source: US Department of the Treasury, Commissioner and Chief Counsel, Internal Revenue Service, 

Highlights of 1986, Washington, DC, 1987. 

8. Severance Taxes 

Definition: Taxes imposed distinctively on the removal of natural products-e.g., oil, gas, and other minerals. The Alaskan special tax on pipeline property and the state's unique oil and gas corporate income tax have 

been included, as well as New Mexico's property tax on oil and gas production equipment and West Virginia's 

business tax on coal companies. Taxes imposed on resources other than minerals such as water, timber, or 

fish, have been excluded. 

Because oil and gas, coal, and nonfuel minerals are taxed at substantially different rates, they are each estimated individually-a separate representative tax rate and base were measured for each of the three severance categories. For 1985, the estimation of bases was refined. Comparability with past estimates is good, 

except for Alaska. 

Tax Base: For each category-oil and gas, coal, and nonfuel minerals-the base was estimated by the value 

of production. 

Sources: 

Value ofMineral Production, Exzept Fuels: U.S. Department of Interior, Bureau of Mines, Preprint 

Proxy to the 1985 Minerals Yearbook, Washington, DC, 1986. 
Oil Production: U.S. Department of Energy, Energy Information Administration, Petroleum Supply Annul, 1985, Washington, DC, 1986. 

Oil Wellhead Prices by State: U.S. Department of Energy, Energy Information Administration, Petroleum Marketing Monthly, December 1986. 

Value of Gas Production: U.S. Department of Energy, Energy Information Administration, NatLLral 

Gas Annual, 1985, Washington, DC 1986. 

Coal Productions and Prices: U.S. Department of Energy, Energy Information Administration, 

Coal Production-1985, Washington, DC, 1986. 

Value of Uranium Production: U.S. Department of Energy, Energy Information Administration, 

Uranium Industry Annual, 1985, Washington, DC, October, 1986. 

ADDITIONAL BASES FOR THE RRS 

9. All Other Taxes 

Definition: A variety of minor taxes remaining after the RTS taxes are excluded from the total. 

Tax Base: Total personal income, 1985. 

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, August 

1986. 

10. Rents and Royalties 

Definition: Payments for state-owned mineral resources not included under severance taxation and excludingrevenues received under the federal Mineral LeasingAct. Actual revenues used as the base, so the effort index is always 100. 

Base: Actual rent and royalty revenues. 

Source: U.S. Department of Commerce, Bureau of the Census, State Government Finances in 1985. 

11. Payments under Mineral Leasing Act 

Definition: Payments from the federal government under the Mineral LeasingAct. As before, actual revenues were used as the base, so the effort index is always 100, when payments are made. 

Base: Actual mineral leasing act revenues. 

Source: U.S. Department of Commerce, Bureau of the Census, Federal Expenditures by State for FY 1985. 

12. User Charges 

Definition: The Census category of "current charges," which comprises amounts received for the performance of specific services benefiting those charged and for sales of goods and services. State insurance, liquor, 

and utility receipts are excluded. Distinguished from license taxes, which relate to the granting of privileges 

and regulatory activities. 

Base: Total personal income, 1985. 

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, August 

1986. 
Summary Tax Tables for Past Years 

This appendix provides summary information on 

.otal RTS taxes for past years 1975, 1977,1979,1980, 

1981, 1982, 1983 and 1984. Explanations of the data 

concepts appear in the introduction to Appendix B. 

The data for 1979 and 1980 are from the ACIR report, Tax Capacity of the Fifty States, Supplement: 1980 

Estimates, released in mimeograph form in June 1982. 

The 1981 data are taken from 1981 Tax Capacib of the 

Fifty States. A-93, published in September 1983. That 

report also contains the revisions of the 1975 and 1977 

data which are reprinted here. The 1982 data are taken 

from 1982 Tax Capacity of the Fifty States, M-142, published in May 1985, and the 1983 data from 1983 Tax 

Capacity of the States, M-148, published April 1986. Finally, the 1984 data were published in the September 

1986 report, Measuring State Fiscal Capacity: Alternative Methods and Their Uses, M-150. 
Table C-1 

1975 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Per 

Capita 

$490.08 

981.95 

585.52 

497.30 

699.02 

671.48 

700.92 

790.76 

747.40 

650.27 

544.86 

689.84 

564.82 

713.66 

622.39 

675.38 

690.28 

540.05 

617.71 

536.30 

639.90 

623.06 

638.89 

617.62 

445.05 

608.52 

652.69 

670.52 

918.52 

651.19 

690.15 

613.19 

622.39 

542.67 

643.65 

659.55 

623.30 

634.59 

625.29 

558.88 

490.18 

600.14 

531.08 

702.19 

547.30 

598.21 

594.01 

621.77 

562.63 

625.01 

976.33 

$635.32 

Tax 

Capacity 

index 

77.1 

154.6 

92.2 

78.3 

110.0 

105.7 

110.3 

124.5 

117.6 

102.4 

85.8 

108.6 

88.9 

112.3 

98.0 

106.3 

108.7 

85.0 

97.2 

84.4 

100.7 

98.1 

100.6 

97.2 

70.0 

95.8 

102.7 

105.5 

144.6 

102.5 

108.6 

96.5 

98.0 

85.4 

101.3 

103.8 

98.1 

99.9 

98.4 

88.0 

77.2 

94.5 

83.6 

110.5 

86.1 

94.2 

93.5 

97.9 

88.6 

98.4 

153.7 

Tax 

Capacity 

$1,803,982 

363,323 

1,338,497 

1,073,169 

15,054,715 

1,736,440 

2,162,327 

465,757 

530,657 

5,554,613 

2,756,450 

609,814 

469,931 

8,068,641 

3,330,402 

1,945,765 

1,573,152 

1,873,428 

2,401,041 

575,454 

2,660,067 

3,590,086 

5,818,967 

2,424,761 

1,068,098 

2,917,841 

488,863 

1,033,272 

569,481 

540,491 

5,066,366 

713,143 

11,223,009 

3,003,668 

410,649 

7,103,356 

1,727,796 

1,475,413 

7,439,723 

528,699 

1,421,530 

408,698 

2,262,941 

8,825,148 

675,369 

287,139 

3,003,289 

2,250,187 

1,035,804 

2,856,311 

371,004 

Tax 

Revenue 

Revenue 

Per 

Capita 

$386.88 

751.18 

631.33 

389.43 

834.37 

604.82 

692.01 

661.34 

699.99 

480.82 

482.65 

821.83 

506.58 

707.56 

572.66 

628.88 

586.04 

455.80 

535.27 

555.92 

675.62 

801.23 

679.36 

725.47 

425.61 

508.91 

600.10 

568.48 

643.53 

489.18 

709.29 

520.96 

993.41 

465.85 

595.11 

524.38 

454.97 

609.01 

581.45 

627.06 

417.74 

524.23 

419.07 

479.48 

488.38 

646.21 

517.50 

628.59 

480.04 

717.97 

680.18 

635.3 

Tax 

Effort 

index 

78.9 

76.5 

107.8 

78.3 

119.4 

90.1 

98.7 

83.6 

93.7 

73.9 

88.6 

119.1 

89.7 

99.1 

92.0 

93.1 

84.9 

84.4 

86.7 

103.7 

105.6 

128.6 

106.3 

117.5 

95.6 

83.6 

91.9 

84.8 

70.1 

75.1 

102.8 

85.0 

159.6 

85.8 

92.5 

79.5 

73.0 

96.0 

93.0 

112.2 

85.2 

87.4 

78.9 

68.3 

89.2 

108.0 

87.1 

101.1 

85.3 

114.9 

69.7 

100.00 

NOTE: AU per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
Table C-2 

1977 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Per 

Capita 

$593.58 

1,219.08 

686.96 

602.43 

874.37 

825.29 

859.16 

927.13 

943.73 

775.16 

647.45 

821.47 

676.80 

864.20 

772.72 

806.36 

810.35 

637.90 

765.99 

634.52 

777.52 

734.19 

793.08 

772.76 

538.48 

735.91 

791.47 

780.39 

1,137.08 

781.90 

813.94 

756.10 

721.72 

638.39 

758.62 

799.80 

779.33 

800.19 

760.70 

672.19 

589.70 

697.84 

637.57 

860.02 

680.01 

712.42 

703.88 

773.24 

690.64 

765.95 

1,182.29 

$769.91 

Tax 

Capacity 

lndex 

77.1 

158.3 

89.2 

78.2 

113.6 

107.2 

111.6 

120.4 

122.6 

100.7 

84.1 

106.7 

87.9 

112.2 

100.4 

104.7 

105.3 

82.9 

99.5 

82.4 

101.0 

95.4 

103.0 

100.4 

69.9 

95.6 

102.8 

101.4 

147.7 

101.6 

105.7 

98.2 

93.7 

82.9 

98.5 

103.9 

101.2 

103.9 

98.8 

87.3 

76.6 

90.6 

82.8 

111,7 

88.3 

92.5 

91.4 

100.4 

89.7 

99.5 

153.6 

Tax 

Capacity 

$2,245,529 

482,757 

1,667,258 

1,329,568 

19,542,166 

2,224,991 

2,653,929 

551,643 

643,625 

6,890,430 

3,374,503 

752,465 

597,611 

9,857,026 

4,176,534 

2,349,737 

1,878,395 

2,280,502 

3,076,226 

701,139 

3,261,709 

4,217,186 

7,262,259 

3,075,568 

1,324,661 

3,565,494 

610,223 

1,212,729 

770,941 

681,819 

5,975,958 

926,222 

12,884,164 

3,618,395 

492,346 

8,614,618 

2,233,548 

1,951,653 

9,038,590 

641,936 

1,762,600 

480,812 

2,806,595 

11,345,393 

894,889 

350,512 

3,664,401 

2,916,647 

1,316,354 

3,533,317 

487,104 

Tax 

Revenue 

$1,769,938 

627,876 

1,840,753 

1,037,165 

22,781,942 

2,113,575 

2,725,909 

440,046 

758,483 

5,023,208 

3,003,345 

861,744 

533,846 

9,502,926 

3,457,834 

2,123,162 

1,665,636 

1,917,163 

2,415,321 

703,361 

3,435,116 

5,588,114 

71,929,331 

3,448,180 

1,239,532 

2,865,258 

574,983 

1,187,139 

475,982 

494,980 

6,732,640 

710,829 

21,655,653 

3,162,884 

432,129 

6,756,882 

1,617,975 

1,799,508 

8,471,665 

728,774 

1,519,733 

415,949 

2,311,205 

7,747,713 

815,133 

363,583 

3,211,306 

2,737,202 

1,054,923 

4,009,596 

397,573 

$169,194,703 

Revenue 

Per 

Capita 

$467.87 

1,585.55 

758.45 

469.94 

1,019.33 

783.97 

882.46 

739.57 

1,112.15 

565.10 

576.24 

940.77 

604.58 

833.15 

639.75 

728.61 

718.57 

536.27 

601.42 

636.53 

818.86 

972.86 

865.93 

866.38 

503.87 

591.38 

745.76 

763.92 

702.04 

567.64 

917.00 

580.27 

1,213.07 

558.02 

665.84 

627.32 

564.54 

737.81 

712.98 

763.11 

508.44 

603.70 

525.04 

587.30 

619.40 

738.99 

616.85 

725.66 

353.47 

869.19 

964.98 

$769.91 

Tax 

Effort 

lndex 

78.8 

130.1 

110.4 

78.0 

116.6 

95.0 

102.7 

79.8 

117.8 

72.9 

89.0 

114.5 

89.3 

96.4 

82.8 

90.4 

88.7 

84.1 

78.5 

100.3 

105.3 

132.5 

109.2 

112.1 

93.6 

80.4 

94.2 

97.9 

61.7 

72.6 

112.7 

76.7 

168.1 

87.4 

87.8 

78.4 

72.4 

92.2 

93.7 

113.5 

86.2 

86.5 

82.3 

68.3 

91.1 

103.7 

87.6 

93.8 

80.1 

113.5 

81.6 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in millions of dollars. 

Source: ACIR staff estimates. 
Table C-3 

1979 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Per 

Capita 

$659.55 

1,884.16 

787.61 

670.86 

1,004.21 

954.54 

940.09 

948.81 

952.06 

865.82 

705.01 

890.86 

791.09 

968.90 

848.82 

937.42 

947.68 

735.80 

896.79 

694.49 

856.87 

809.86 

901.95 

912.79 

607.08 

842.49 

982.07 

863.25 

1,330.51 

834.63 

885.96 

894.22 

772.03 

708.27 

940.94 

872.8 

936.85 

922.22 

806.49 

727.22 

656.71 

821.98 

700.99 

1,011.41 

751.97 

740.13 

803.13 

895.97 

800.23 

862.24 

1,500.69 

$866.65 

Tax 

Capacity Tax 

lndex 

76.1 

217.4 

90.9 

77.4 

115.9 

110.1 

108.5 

109.5 

109.9 

99.9 

81.3 

102.8 

91.3 

111.8 

97.9 

108.2 

109.4 

84.9 

103.5 

80.1 

98.9 

93.4 

104.1 

105.3 

70.0 

97.2 

113.3 

99.6 

153.5 

96.3 

102.2 

103.2 

89.1 

81.7 

108.6 

100.7 

108.1 

106.4 

93.1 

83.9 

75.8 

94.8 

80.9 

116.7 

86.8 

85.4 

92.7 

103.4 

92.3 

99.5 

173.2 

Capacity 

$2,551,780 

757,431 

2,078,492 

1,522,184 

23,353,002 

2,719,478 

2,914,284 

568,335 

624,550 

8,200,157 

3,800,688 

846,320 

738,084 

11,067,718 

4,647,289 

2,734,451 

2,224,209 

2,681,237 

3,711,826 

781,295 

3,618,552 

4,653,452 

8,342,109 

3,685,855 

1,522,548 

4,118,941 

774,856 

1,350,124 

1,017,838 

761,178 

6,532,180 

1,145,494 

13,614,036 

4,109,391 

613,490 

9,425,331 

2,782,445 

2,377,471 

9,576,256 

695,951 

2,027,258 

566,344 

3,177,571 

14,045,386 

1,064,785 

374,505 

4,276,688 

3,595,515 

1,551,655 

4,023,208 

678,309 

Tax 

Revenue 

$2,186,816 

976,989 

2,382,420 

1,239,775 

22,107,852 

2,615,850 

2,980,583 

542,545 

826,071 

6,414,356 

3,637,460 

1,080,086 

671,013 

10,941,473 

3,913,805 

2,547,613 

1,937,041 

2,324,210 

3,050,210 

856,575 

3,953,894 

6,720,404 

9,443,332 

4,253,966 

1,469,557 

3,380,172 

678,141 

1,317,718 

663,361 

596,428 

7,691,389 

974,144 

23,275,641 

3,736,400 

476,714 

8,125,205 

2,058,991 

2,202,689 

10,096,094 

842,183 

1,851,868 

475,426 

2,758,544 

9,045,174 

1,057,766 

410,027 

3,778,280 

3,463,003 

1,275,262 

4,755,064 

562,055 

$194,621,667 

Revenue 

Per 

Capita 

$565.22 

2,430.32 

902.77 

546.40 

950.67 

918.16 

961.48 

905.75 

1,259.25 

677.26 

674.73 

1,136.93 

719.20 

957.85 

714.85 

873.37 

825.33 

637.82 

736.94 

761.40 

936.28 

1,169.58 

1,021.01 

1,053.48 

585.95 

691.38 

859.49 

842.53 

867.14 

653.98 

1,043.18 

760.46 

1,319.93 

643.98 

731.16 

752.40 

693.26 

854.42 

850.27 

880.03 

599.89 

690.02 

608.55 

651.34 

747.01 

810.33 

709.54 

862.95 

657.69 

1,019.09 

1,243.49 

$866.65 

Tax 

Effort 

lndex 

85.7 

129.0 

114.6 

81.4 

94.7 

96.2 

102.3 

95.5 

132.3 

78.2 

95.7 

127.6 

90.9 

98.9 

84.2 

93.2 

87.1 

86.7 

82.2 

109.6 

109.3 

144.4 

113.2 

115.4 

96.5 

82.1 

87.5 

97.6 

65.2 

78.4 

117.7 

85.0 

171.0 

90.9 

77.7 

86.2 

74.0 

92.6 

105.4 

121.0 

91.3 

83.9 

86.8 

64.4 

99.3 

109.5 

88.3 

96.3 

82.2 

118.2 

82.9 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
Table C-4 

1980 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Totals 

Capacity 

Per 

Capita 

$718.08 

2,463.42 

841.52 

749.52 

1,109.69 

1,068.51 

1,058.49 

1,057.35 

1,051.24 

949.01 

778.09 

1,010.60 

830.11 

1,021.05 

874.94 

997.94 

1,032.42 

787.16 

1,036.40 

759.27 

941.01 

912.94 

919.94 

969.33 

657.81 

887.89 

1,066.59 

918.34 

1,465.23 

915.54 

996.88 

1,016.20 

855.25 

754.34 

1,027.74 

918.44 

1,107.97 

978.50 

878.63 

794.81 

713.86 

855.62 

749.36 

1,172.51 

815.73 

801.49 

899.06 

976.17 

888.77 

898.66 

1,861.55 

$948.73 

Tax 

Capacity 

lndex 

75.7 

259.7 

88.7 

79.0 

117.0 

112.6 

111.6 

111.4 

110.8 

100.0 

82.0 

106.5 

87.5 

107.6 

92.2 

105.2 

108.8 

83.0 

109.2 

80.0 

99.2 

96.2 

97.0 

102.2 

69.3 

93.6 

112.4 

96.8 

154.4 

96.5 

105.1 

107.1 

90.1 

79.5 

108.3 

96.8 

116.8 

103.1 

92.6 

83.8 

75.2 

90.2 

79.0 

123.6 

86.0 

84.5 

94.8 

102.9 

93.7 

94.7 

196.2 

Tax 

Capacity 

$2,799,780 

990,293 

2,291,663 

1,717,155 

26,331,802 

3,094,400 

3,297,188 

631,239 

672,793 

9,355,327 

4,262,375 

978,257 

786,111 

11,687,956 

4,814,798 

2,913,978 

2,445,803 

2,888,891 

4,368,436 

856,451 

3,977,646 

5,248,268 

8,537,076 

3,961,646 

1,662,290 

4,376,434 

841,538 

1,445,462 

1,173,647 

845,046 

7,365,925 

1,324,114 

15,057,553 

4,441,553 

672,138 

9,940,257 

3,360,458 

2,582,257 

10,451,293 

755,072 

2,232,948 

592,945 

3,448,535 

16,723,511 

1,195,045 

411,164 

4,818,051 

4,041,326 

1,736,662 

4,238,961 

880,512 

Tax 

Revenue 

$2,384,918 

1,646,202 

2,690,584 

1,468,459 

26,800,496 

2,797,433 

3,291,924 

561,445 

882,700 

6,908,203 

4,100,241 

1,217,877 

694,191 

11,977,864 

4,056,063 

2,789,467 

2,150,164 

2,560,950 

3,395,536 

951,629 

4,320,412 

7,060,839 

9,867,747 

4,402,580 

1,603,620 

3,657,131 

775,546 

1,477,223 

698,404 

633,959 

8,247,468 

1,100,681 

25,201,545 

4,303,975 

529,354 

8,616,655 

2,404,433 

2,409,913 

10,845,991 

929,754 

2,131,822 

523,256 

2,902,564 

10,858,746 

1,208,944 

428,281 

4,256,031 

3,788,027 

1,426,263 

4,931,821 

654,657 

$215,524,055 

Revenue 

Per 

Capita 

$611.67 

4,095.03 

987.73 

640.97 

1,129.44 

965.96 

1,056.80 

940.45 

1,379.22 

700.77 

748.49 

1,258.14 

733.04 

1,046.38 

737.06 

955.30 

907.63 

697.81 

805.58 

843.64 

1,022.10 

1,227.76 

1,063.33 

1,077.22 

634.59 

741.96 

982.95 

938.52 

$71.92 

686.85 

1,116.18 

844.73 

1,431.42 

730.97 

809.41 

796.14 

792.76 

913.19 

911.81 

978.69 

681.53 

755.06 

630.72 

761.32 

825.22 

834.86 

794.18 

914.98 

729.92 

1,045.54 

1,384.05 

$948.73 

Tax 

Effort 

lndex 

85.2 

166.2 

117.4 

85.5 

101.8 

90.4 

99.8 

88.9 

131.2 

73.8 

96.2 

124.5 

88.3 

102.5 

84.2 

95.7 

87.9 

88.6 

77.7 

111.1 

108.6 

134.5 

115.6 

111.1 

96.5 

83.6 

92.2 

102.2 

59.5 

75.0 

112.0 

83.1 

167.4 

96.9 

78.8 

86.7 

71.6 

93.3 

103.8 

123.1 

95.5 

88.2 

84.2 

64.9 

101.2 

104.2 

88.3 

93.7 

82.1 

116.3 

74.3 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Totals 

Capacity 

Per 

Capita 

$766.74 

3,333.35 

913.45 

839.75 

1,186.14 

1,160.97 

1,131.92 

1,143.38 

1,142.80 

1,040.65 

838.18 

1,076.52 

891.21 

1,070.10 

932.45 

1,053.56 

1,125.09 

843.99 

1,200.46 

815.84 

1,009.37 

988.64 

990.53 

1,030.88 

737.47 

947.69 

1,168.94 

996.91 

1,523.84 

982.72 

1,077.82 

1,170.00 

916.42 

818.77 

1,271.12 

971.91 

1,310.98 

1,019.42 

931.14 

827.46 

774.19 

888.98 

812.85 

1,359.95 

890.37 

864.76 

969.08 

1,020.67 

926.36 

935.97 

2,227.54 

$1,029.52 

Table C-5 

1981 -ALL RTS TAXES 

Tax 

Capacity Tax 

index Capacity 

Tax 

Revenue 

$2,720,058 

2,533,290 

2,702,681 

1,522,070 

28,795,873 

2,877,328 

3,643,861 

593,579 

1,049,103 

7,762,573 

4,545,647 

1,327,453 

743,224 

12,883,547 

4,510,288 

2,999,988 

2,332,740 

2,732,962 

3,968,957 

1,046,896 

4,621,140 

7,649,132 

10,584,723 

4,591,076 

1,766,352 

3,803,382 

856,475 

1,490,766 

793,614 

679,850 

8,913,238 

1,383,998 

27,586,527 

4,644,360 

619,109 

9,292,758 

2,950,586 

2,734,563 

11,580,833 

1,024,150 

2,335,778 

566,624 

3,262,599 

12,969,436 

1,310,878 

469,170 

4,709,596 

3,962,131 

1,503,005 

5,337,943 

794,757 

$236,080,697 

Revenue 

Per 

Capita 

$694.42 

6,148.76 

967.32 

662.92 

1,190.11 

970.43 

1,162.69 

992.61 

1,662.60 

762.31 

815.51 

1,353.16 

775.00 

1,124.02 

824.85 

1,034.84 

978.91 

746.30 

921.30 

924.00 

1,084.01 

1,324.98 

1,150.01 

1,121.42 

697.89 

769.76 

1,080.05 

945.32 

939.19 

726.34 

1,203.84 

1,042.17 

1,567.24 

780.17 

940.90 

861.96 

951.80 

1,031.52 

975.56 

1,074.66 

737.54 

825.98 

707.42 

878.33 

863.56 

909.25 

867.33 

939.56 

769.98 

1,125.67 

1,615.36 

$1,029.52 

Tax 

Eff art 

index 

90.6 

184.5 

105.9 

78.9 

100.3 

83.6 

102.7 

86.8 

145.5 

73.3 

97.3 

125.7 

87.0 

105.0 

88.5 

98.2 

87.0 

88.4 

76.7 

113.3 

107.4 

134.0 

116.1 

108.8 

94.6 

81.2 

92.4 

94.8 

61.6 

73.9 

111.7 

89.1 

171.0 

95.3 

74.0 

88.7 

72.6 

101.2 

104.8 

129.9 

95.3 

92.9 

87.0 

64.6 

97.0 

105.1 

89.5 

92.1 

83.1 

120.3 

72.5 

100.0 

NOTE: AU per capita amounts are in dollars; tot. amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
Table C-6 

1982 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Totals 

Capacity 

Per 

Capita 

$819.38 

3,471.05 

1,062.80 

871.79 

1,287.97 

1,347.38 

1,303.52 

1,276.96 

1,273.57 

1,152.69 

929.71 

1,301.73 

955.85 

1,094.41 

987.14 

1,065.98 

1,180.99 

909.00 

1,255.94 

935.14 

1,106.11 

1,116.52 

1,031.25 

1,100.08 

785.53 

1,004.92 

1,219.27 

1,078.94 

1,674.31 

1,110.01 

1,171.82 

1,272.99 

1,019.29 

905.50 

1,278.22 

1,016.93 

1,399.38 

1,093.78 

986.34 

903.65 

822.05 

970.50 

859.31 

1,447.54 

957.14 

982.66 

1,039.23 

1,128.04 

1,020.79 

964.30 

2,234.37 

$1,110.91 

Tax 

Capacity 

lndex 

73.8 

312.4 

95.7 

78.5 

115.9 

121.3 

117.3 

114.9 

114.6 

103.8 

83.7 

117.2 

86.0 

98.5 

88.9 

96.0 

106.3 

81.8 

113.1 

84.2 

99.6 

100.5 

92.8 

99.0 

70.7 

90.5 

109.8 

97.1 

150.7 

99.9 

105.5 

114.6 

91.8 

81.5 

115.1 

91.5 

126.0 

98.5 

88.8 

81.3 

74.0 

87.4 

77.4 

130.3 

86.2 

88.5 

93.5 

101.5 

91.9 

86.8 

201.1 

Tax 

Capacity 

$3,229,191 

1,541,145 

3,073,607 

2,011,224 

31,808,920 

4,137,816 

4,074,790 

766,178 

797,256 

12,064,076 

5,252,011 

1,297,825 

933,864 

12,548,523 

5,411,526 

3,097,751 

2,843,829 

3,356,039 

5,504,786 

1,062,317 

4,723,100 

6,420,008 

9,400,836 

4,546,619 

2,018,030 

4,966,333 

981,515 

1,714,431 

1,466,691 

1,052,285 

8,703,095 

1,740,172 

17,905,923 

5,450,199 

858,962 

10,954,378 

4,514,415 

2,918,196 

11,716,695 

861,181 

2,652,751 

673,524 

4,000,956 

22,189,306 

1,503,675 

510,981 

5,700,169 

5,823,492 

2,001,772 

4,575,594 

1,137,295 

Tax 

Revenue 

Revenue 

Per 

Caplta 

$713.70 

6,236.38 

975.73 

708.24 

1,272.33 

1,088.78 

1,290.79 

1,072.26 

1,845.52 

830.93 

890.76 

1,370.79 

807.89 

1,171.53 

871.05 

1,123.27 

1,033.91 

804.25 

1,027.45 

998.60 

1,174.96 

1,332.60 

1,241.02 

1,224.25 

725.63 

819.80 

1,184.69 

1,008.60 

1,051.14 

831.49 

1,321.92 

1,049.77 

1,731.71 

848.06 

1,056.25 

959.80 

1,095.76 

1,040.58 

1,045.44 

1,199.54 

787.55 

880.94 

734.82 

949.88 

927.27 

1,007.30 

933.09 

1,046.56 

877.49 

1,233.05 

2,339.71 

$1,110.91 

Tax 

Effort 

lndex 

87.1 

179.7 

91.8 

81.2 

98.8 

80.8 

99.0 

84.0 

144.9 

72.1 

95.8 

105.3 

84.5 

107.0 

88.2 

105.4 

87.5 

88.5 

81.3 

106.8 

106.2 

119.4 

120.3 

111.3 

92.4 

81.6 

97.2 

93.5 

62.8 

74.9 

112.8 

82.5 

169.9 

93.7 

82.6 

94.4 

78.3 

95.1 

106.0 

132.7 

95.8 

90.8 

85.5 

65.6 

96.9 

102.5 

89.8 

92.8 

86.0 

127.9 

104.7 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
Table C-7 

1983 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Totals 

Capacity 

Per 

Capita 

$879.52 

3,197.91 

1,140.97 

913.16 

1,395.97 

1,436.96 

1,456.06 

1,388.72 

1,371.74 

1,216.52 

1,022.21 

1,336.93 

979.56 

1,153.28 

1,012.50 

1,068.27 

1,203.23 

926.60 

1,254.58 

1,060.84 

1,164.45 

1,252.91 

1,060.65 

1,141.14 

801.88 

1,049.01 

1,237.53 

1,184.30 

1,731.12 

1,265.42 

1,319.26 

1,268.10 

1,122.22 

1,020.22 

1,302.78 

1,051.31 

1,350.65 

1,122.84 

1,037.73 

1,009.34 

888.27 

1,028.03 

943.95 

1,453.84 

965.02 

1,102.49 

1,123.96 

1,184.55 

1,024.13 

1,024.99 

2,144.92 

$1,175.95 

Tax 

Capacity 

lndex 

74.8 

271.9 

97.0 

77.7 

118.7 

122.2 

123.8 

118.1 

116.6 

103.4 

86.9 

113.7 

83.3 

98.1 

86.1 

90.8 

102.3 

78.8 

106.7 

90.2 

99.0 

106.5 

90.2 

97.0 

68.2 

89.2 

105.2 

100.7 

147.2 

107.6 

112.2 

107.8 

95.4 

86.8 

110.8 

89.4 

114.9 

95.5 

88.2 

85.8 

75.5 

87.4 

80.3 

123.6 

82.1 

93.8 

95.6 

100.7 

87.1 

87.2 

182.4 

Tax 

Capacity 

$3,482,021 

1,531,798 

3,380,689 

2,125,825 

35,142,023 

4,510,614 

4,569,103 

841,566 

854,592 

12,992,425 

5,859,329 

1,367,684 

968,781 

13,246,549 

5,547,509 

3,103,327 

2,917,845 

3,441,397 

5,567,839 

1,215,723 

5,011,778 

7,225,509 

9,618,997 

4,728,880 

2,074,460 

5,213,579 

1,011,065 

1,891,333 

1,542,425 

1,213,537 

9,852,207 

1,774,076 

19,826,188 

6,205,000 

885,890 

11,297,348 

4,454,446 

2,988,989 

12,343,767 

963,919 

2,899,298 

719,619 

4,422,427 

22,860,140 

1,562,367 

578,805 

6,237,986 

5,093,560 

2,012,423 

4,869,737 

1,102,487 

Tax 

Revenue 

$3,017,055 

2,541,654 

3,084,752 

1,757,452 

32,470,874 

3,561,238 

4,400,895 

686,973 

1,250,422 

9,757,580 

5,425,387 

1,476,751 

838,297 

14,165,434 

4,925,277 

3,369,598 

2,696,629 

3,124,179 

4,526,268 

1,220,161 

5,373,517 

8,102,892 

12,327,940 

5,877,765 

1,963,166 

4,531,320 

946,827 

1,785,338 

982,086 

836,787 

10,741,709 

1,401,341 

32,366,659 

5,447,843 

719,685 

11,621,122 

3,578,197 

3,092,487 

12,935,494 

1,218,572 

2,769,045 

614,295 

3,625,078 

15,335,713 

1,533,100 

551,372 

5,566,579 

5,305,601 

1,765,134 

6,685,192 

1,250,212 

$275,148,881 

Revenue 

Per 

Capita 

$762.08 

5,306.17 

1,041.09 

754.92 

1,289.86 

1,134.51 

1,402.45 

1,133.62 

2,007.10 

913.63 

946.51 

1,443.55 

847.62 

1,233.28 

898.94 

1,159.93 

1,112.01 

841.19 

1,019.89 

1,064.71 

1,248.49 

1,405.04 

1,359.35 

1,418.38 

758.86 

911.73 

1,158.91 

1,117.93 

1,102.23 

872.56 

1,438.36 

1,001.67 

1,823.04 

895.73 

1,058.36 

1,081.44 

1,084.96 

1,161.72 

1,087.47 

1,275.99 

848.36 

877.56 

773.76 

975.31 

946.94 

1,050.23 

1,002.99 

1,233.86 

898.29 

1,407.11 

2,432.32 

$1,175.95 

Tax 

Effort 

lndex 

86.6 

165.9 

91.2 

82.7 

92.4 

79.0 

96.3 

81.6 

146.3 

75.1 

92.6 

108.0 

86.5 

106.9 

88.8 

108.6 

92.4 

90.8 

81.3 

100.4 

107.2 

112.1 

128.2 

124.3 

94.6 

86.9 

93.6 

94.4 

63.7 

69.0 

109.0 

79.0 

163.3 

87.8 

81.2 

102.9 

80.3 

103.5 

104.8 

126.4 

95.5 

85.4 

82.0 

67.1 

98.1 

95.3 

89.2 

104.2 

87.7 

137.3 

113.4 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 
Table C-8 

1984 -ALL RTS TAXES 

State 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

Washington, DC 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

U.S. Total 

Capacity 

Per 

Capita 

$954.10 

3,257.48 

1,287.58 

978.00 

1,556.24 

1,582.54 

1,621.00 

1,598.03 

1,561.94 

1,364.11 

1,164.71 

1,536.49 

1,016.53 

1,259.55 

1,139.65 

1,128.66 

1,307.44 

1,005.39 

1,334.13 

1,148.06 

1,375.22 

1,447.58 

1,209.11 

1,319.77 

907.28 

1,165.13 

1,242.25 

1,214.84 

1,898.66 

1,437.64 

1,487.87 

1,348.65 

1,283.65 

1,129.24 

1,380.19 

1,172.14 

1,473.73 

1,220.85 

1,151.80 

1,125.68 

998.22 

1,083.78 

1,049.82 

1,531.74 

1,050.16 

1,243.75 

1,249.71 

1,292.79 

1,034.75 

1,157.49 

2,365.38 

$1,304.27 

Tax 

Capacity 

lndex 

73.2 

249.8 

98.7 

75.0 

119.3 

121.3 

124.3 

122.5 

119.8 

104.6 

89.3 

117.8 

77.9 

96.6 

87.4 

86.5 

100.2 

77.1 

102.3 

88.0 

105.4 

111.0 

92.7 

101.2 

69.6 

89.3 

95.2 

93.1 

145.6 

110.2 

114.1 

103.4 

98.4 

86.6 

105.8 

89.9 

113.0 

93.6 

88.3 

86.3 

76.5 

83.1 

80.5 

117.4 

80.5 

95.4 

95.8 

99.1 

79.3 

88.7 

181.4 

100.0 

Tax 

Capacity 

$3,807 

1,629 

3,931 

2,297 

39,874 

5,029 

5,113 

980 

973 

14,972 

6,798 

1,596 

1,018 

14,499 

6,266 

3,284 

3,188 

3,743 

5,953 

1,327 

5,981 

8,393 

10,973 

5,493 

2,357 

5,835 

1,024 

1,951 

1,730 

1,405 

11,181 

1,920 

22,766 

6,962 

947 

12,603 

4,860 

3,265 

13,708 

1,083 

3,294 

765 

4,952 

24,491 

1,735 

659 

7,043 

5,622 

2,020 

5,516 

1,209 

$308,018 

Tax 

Revenue 

$3,437 

2,291 

3,713 

1,992 

37,045 

4,126 

5,073 

758 

1,353 

11,023 

6,036 

1,585 

927 

15,878 

5,963 

3,668 

3,024 

3,315 

4,846 

1,398 

5,961 

8,845 

14,176 

6,797 

2,229 

4,965 

1,032 

1,926 

1,118 

968 

12,132 

1,631 

36,045 

6,223 

883 

13,185 

3,687 

3,355 

14,408 

1,331 

3,112 

662 

3,989 

16,827 

1,841 

618 

6,214 

5,808 

2,013 

7,317 

1,274 

$308,018 

Revenue 

Per 

Capita 

$861.50 

4,581.86 

1,216.16 

847.91 

1,445.82 

1,298.37 

1,608.29 

1,236.13 

2,171.72 

1,004.30 

1,034.06 

1,525.16 

925.68 

1,379.35 

1,084.57 

1,260.49 

1,240.40 

890.32 

1,086.00 

1,209.47 

1,370.71 

1,525.50 

1,562.05 

1,633.06 

857.96 

991.38 

1,252.84 

1,199.25 

1,226.74 

990.70 

1,614.40 

1,145.23 

2,032.40 

1,009.39 

1,287.41 

1,226.27 

1,117.90 

1,254.63 

1,210.62 

1,383.25 

943.05 

937.51 

845.70 

1,052.38 

1,114.20 

1,165.11 

1,102.60 

1,335.47 

1,031.32 

1,535.47 

2,493.15 

$1,304.27 

Tax 

Effort 

lndex 

90.3 

140.7 

94.5 

86.7 

92.9 

82.0 

99.2 

77.4 

139.0 

73.6 

88.8 

99.2 

91.1 

109.5 

95.2 

111.7 

94.9 

88.6 

81.4 

105.3 

99.7 

105.4 

129.2 

123.7 

94.6 

85.1 

100.9 

98.7 

64.6 

68.9 

108.5 

84.9 

158.3 

89.4 

93.3 

104.6 

75.9 

102.8 

105.1 

122.9 

94.5 

86.5 

80.6 

68.7 

106.1 

93.7 

88.2 

103.3 

99.7 

132.7 

105.4 

100.0 

NOTE: All per capita amounts are in dollars; total amounts are in thousands of dollars. 

Source: ACIR staff estimates. 



Recent ACIR Publications 

The 1986 Federal Tax Reform Act: Its Effect on Both Federal and State Personal 

Income Tax Liabilities, SR-7, forthcoming 12/87 

The Organization of Local Public Economies, A-109,64 pp. 

Measuring State Fiscal Capacity, 1987 Editon, M-156,12/87,152 pp. 

Significant Features of Fiscal Federalism, 1988 Edition, Vol 1, M-155,12/87, 128 pp. 

Is Constitutional Reform Necessary to Reinvigorate Federalism? A Roundtable 

Discussion, M-154, 11/87, 39 pp. 

Local Revenue Diversification: User Charges, SR-6. 10187, 64 pp. 

The Transformation in American Politics: Implications for Federalism, 

B-9R, 10/87, 88 pp. 

Changing Public Attitudes on Governments and Taxes, S-16,9/87,64 pp. 

Devolving Selected Federal-Aid Highway Programs and Revenue Bases: 

A Critical Appraisal, A-108,9/87, 56 pp. 

Estimates of Revenue Potential from State Taxation of Out-of-State Mail Order 

Sales, SR-5,9/87, 10 pp. 

A Catalog of Federal Grant-in-Aid Programs to State and Local Governments: 

Grants Funded FY 1987, M-153,8/87,36 pp. 

Fiscal Discipline in the Federal System: National Reform and the Experience of 

the States, A-107, 8/87, 58 pp . 

Federalism and the Constitution: A Symposium on Garcia, M-152,7187, 88 pp. 

Local Perspectives on State-Local Highway Consultation and Cooperation, 

dR-4, 7/87,48 pp. 

Summary of Welfare Reform Hearings-1986, SR-3,6/87,31 pp. 

Significant Features of Fiscal Federalism, 1987 Edition, M-151, 6187,304 pp. 

Preliminary Estimates of the Effect of the 1986 Federal Tax Reform Act 

on State Personal Income Tax Liabilities, SR-2, 12/86,16 pp. 

Measuring State Fiscal Capacity: Alternative Methods and Their Uses, 

1986 Edition, M-150,9186, 181 pp. 

The Transformation in American Politics: Implications for Federalism, 

A-106, 8/86, 400 pp. 

The Agricultural Recession: Its Impact on the Finances of State and Local 

Governments, SR-1, 6/86, 60 pp. 

State and Local Taxation of Out-of-State Mail Order Sales, A-105,4/86,160 pp. 

A Framework for Studying the Controversy Concerning the Federal Courts and 

Federalism, M-149, 4/86, 75 pp. 

The reports of the Advisory Commission on Intergovernmental Relations are released in five series: the "A" series denotes reports containing commission recommendations; the "M" series contains Commission information reports ; the 

"Sn series identifies reports based on public opinion surveys; the "Bn series reports are abbreviated summaries of full 

reports; and the "SRn series are staff information reports. Reports may be obtained from ACIR, 1111-20th Street. NW, 

Washington, DC 20575. 

Devolving Federal Program Responsibilities and Revenue Sources to State and 

Local Governments, A-104,3/86,88 pp. 
What 

ACIR? 

The iAdvisorJr Co-om on I~~VBFBm%n~~oplg&CIR3~~b~ 

~~@'i~t.omoaiaor~opgrammt &tad the *k