State's budget decline was 2nd steepest in U.S.

Arizona's tax base suffered the second steepest decline in the nation in 2009, newly released census data shows.

Overall tax collections in Arizona fell 17.9 percent last year, a dropoff exceeded only by Alaska, which fell 41.2 percent. The drop is based on comparisons in 31 tax categories for all 50 state governments.

The drop in revenue is no surprise at the State Capitol, where lawmakers have spent much of the past year wrangling over how to balance the state's budget in the midst of collapsing tax collections. The data does, however, add a measure of scale to what Arizona has faced in trying to manage its revenue troubles compared to other states.

California, for example, has come to symbolize the torturous state budgeting process nationally. That state reported overall tax collections fell 13.9 percent.

Arizona reported the nation's steepest drop in individual income taxes, with revenue falling 42.5 percent from 2008. By comparison, South Carolina finished second with a 29.6 decline.

Arizona's overall sales and gross receipt-like taxes fell 9.3 percent, fourth worst in the nation for that category.

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