Utah gains tax revenue during height of pandemic, top 5 in country
With the coronavirus pandemic shuttering businesses across the country, making 2020 one of the most difficult years for businesses, there are positive signs for 21 state budgets. (Photo: KUTV)
KUTV — With the coronavirus pandemic shuttering businesses across the country, making 2020 one of the most difficult years for businesses, there are positive signs for 21 state budgets.
Utah lands in the top five as one of the states fairing best in not only keeping but gaining tax revenue year over year.
The largest increases in tax revenues were in Vermont (+12.8%), Idaho (+10.8%), South Dakota (+7.9%), and New Mexico (+7.4%). Utah was not far behind with a gain of (+6.6%) comparing 2020 to 2019.
JP Morgan hypothesizes the growth may be due to a mix of factors, including state economies and industries, and possible COVID-19-related “shifts in activity and driving patterns including vacations to national parks in the west.”
GOP Senators, including Utah’s Mitt Romney, who met with President Joe Biden on Monday used these numbers to show the president that a more targeted approach for another round of stimulus could save the country billions of dollars.
Following the meeting with Biden, Romney noted that “if you compare the calendar year 2020 to 2019 there are 21 states that had an increase in revenue.” Romney noted that “if there is funding in [Biden's] plan for states and localities it is based on need not a simple blanket of billions of dollars that would be a windfall” for states like Utah, Idaho, Vermont, South Dakota and New Mexico that have seemingly come out ahead.
Romney said he’s “hopeful they’ll look at the adjustments.” The group of 10 GOP senators believes “we can’t keep borrowing massively more. This is a real peril to our kids and grandkids."
GOP senator gave Biden a look at states and how they are fairing using maps created by JP Morgan from the following report: Municipal Markets Weekly - Research - J.P. Morgan Markets
Exhibit 10: Across our sample size of 47 states, we find that on average, 2020 aggregate tax revenue decline totaled just 0.12%, with many states within a band of +/- 5% revenue gain/decline
JP Morgan reports Idaho +11.8%, Michigan +9.7%, Utah +9.3%, Arizona +8.0% reported the highest YoY sales tax collections (Exhibit 14).
Looking at personal income taxes- Utah made a gain of 9.3% with neighboring Nevada losing the same amount -9.3%.
Utah did see a hit when looking at personal income tax, reflective of salaries year over year.
