Our new state tax revenue section makes it easy to view the effects of the current economic downturn on state tax revenues. Take for example the case of California. As shown in the graph below, revenue from sales taxes hit a peak of $9.5 Billion in Q4 2007 and a recent low of $7.3 Billion in Q1 2009. The amount collected for Q2 2010 (which is the most recent amount reported to the US Census Bureau) was $9.1 Billion, which some would argue is clear proof that the economy is recovering, while others say that it is just a temporary increase due to temporary government stimulus.
Source: US Census Bureau