Taxing Matters

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IF YOUR STATE WANTED TO RAISE revenue, where would it hit you -- at the cash register or in personal and corporate income taxes?

States tend to fall into two camps: those that tax consumption through sales and excise taxes and those that tax production through corporate and personal income taxes. Where a state chooses to raise its revenue depends somewhat on its economic structure. States with strong industrial bases tend to tax income, while tourist havens such as Hawaii, Nevada, and Florida fill their coffers by taxing purchases. Here are the top 10 states in each category, based on 1984 U.S. Census Bureau figures.

Top 10 Production-Taxing States

State Total Tax * % Indiv. % Corp.

* Ore. $1,851 66 8

* Mass. 5,839 48 13

* N.Y. 18,818 50 8

* Mich. 8,569 39 15

* Del. 713 48 6

* Minn. 5,077 46 6

* Wis. 5,116 43 8

* Va. 4,064 43 6

* Calif. 25,618 36 13

* N.C. 4,636 39 8

Nat'l. Average 26 7

* ($million)

Top 10 Consumption-Taxing States

% Sales & % Indiv. &

State Total Tax * Receipts Corp

* Nev. $861 85 +

* S.Dak. 359 81 5

* Fla. 7,329 78 5

* Wash. 4,542 76 +

* Tenn. 2,512 76 11

* Conn. 3,086 69 22

* W.Va. 1,714 65 28

* Tex. 9,829 65 +

* Miss. 1,741 64 21

* Hawaii 1,248 63 35

Nat'l. Average 50 33

* ($million)

+ Not applicable