The Atlanta Journal-Constitution
WHY IT HAPPENED
One big reason: $600-a-week federal supplements that allowed people to keep spending — and states to keep collecting sales tax revenue — even when they were jobless, along with the usual state unemployment benefits.
Many states also benefited from tax-law changes enacted before the pandemic, after a 2018 Supreme Court decision that let them compel out-of-state retailers to collect sales taxes on online purchases.
To some extent, the states’ surprising recoveries reflect the timing of events last year. The pandemic started just as many state lawmakers were reviewing initial budget proposals for the coming fiscal year. The proposals, drawn up weeks before the shock, forecast a year of strong tax collections.