One point of contention in the North Carolina tax reform debate has been the fate of one particular tax expenditure—the uncapped sales tax refund for nonprofits. The refund applies to "sales of taxable tangible personal...
- Monday Map: State Revenue Volatility
Monday Map: State Revenue Volatility
Today's Monday Map shows volatility in state revenues over the past decade. The volatility score is expressed as a percentage of the top state, which is Alaska.
A note on methodology: To calculate the revenue volatility, we start by looking at per capita revenues in real 2009 dollars, from 2000 to 2009. We then fit an exponential trendline through the ten data points, calculate the standard deviation, and divide that number by the average revenue of all ten points. For Alaska, this number is 0.454 (i.e., the standard deviation from an exponential fit is equal to 45.4% of the average revenue over the time period.) Other states are expressed as a percentage of Alaska's score (i.e. Alaska = 100.) Alaska's volatility is high because the state is heavily dependent on oil revenues, which are more volatile than more conventional sources of state revenue.
Buy this blogger a cup of coffee!
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.