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A sharp decline in income tax receipts during the first quarter of the year and an increase in the dollar amount of taxpayer refunds are causing further stress to already battered state budgets, according to new data released in June. The drop in income tax collections is mostly attributable to income not subject to withholding, such as capital gains, rents, interest, dividends, and stock options. The increase in refunds is the result of greater than anticipated short-term layoffs, reduced hours, and declines in other forms of wage and salary income, such as bonuses. In releasing the study, the National Governors Association, the National ...