Updated July 2, 2009.

State legislators faced with mammoth budget gaps and sharply lower revenue are looking to residents to bail them out.

The shortfall for the 2010 fiscal year totals $166 billion across 48 states, according to the Center on Budget and Policy Priorities (CBPP), a think tank in Washington, D.C., that tracks state deficits. States are addressing those gaps in various ways, one of which is raising taxes. Twenty-five states have passed tax hikes this year, and another 12 are considering doing so, according to the CBPP. Lawmakers around the country are realizing that the budget holes are too big to be filled by cuts alone.

"Pretty much everyone is doing poorly," says Kim Rueben, a senior research associate at the Tax Policy Center. "It's just a question of who's hurting more than others."

The heaviest cuts have come in California, which is now on the brink of a financial meltdown. The Golden State is projecting that it will fall short by more than $25 billion in fiscal 2010 and is preparing to issue IOUs to companies and individuals owed money by the state. New York is a distant second with a projected $17.6 billion deficit for 2010, according to the National Conference of State Legislatures (NCSL), a bipartisan policy research organization in Washington, D.C.

How can these states miss the mark so badly? The recession has sapped the two major sources of state revenue: income taxes (thanks to rising unemployment, fewer people are getting paid) and sales taxes (quite simply, consumers are spending less). Those two things together really, really lead to a high loss of tax revenues, far in excess of loss of income, says Michael Hicks, director of Ball State University s Center for Business and Economic Research.

Here are five states where residents should prepare to pay up.

Even though raising taxes is typically a last resort, many states have no choice but to do so. And, in some, lawmakers are leaving no stone unturned when it comes to finding items or services to tax. New York, for instance, has raised taxes on tobacco, wine and limo services. Meanwhile, Massachusetts lawmakers approved a tax on satellite television service and Georgia lawmakers proposed a pole tax that would charge gentlemen s club patrons $5 at the door.

To figure out which states are inflicting the biggest tax hikes on residents, SmartMoney pored over reports from tax research groups and contacted state budget offices. We looked at state budget deficits tracked by the NCSL and current sales tax rate data from the Federation of Tax Administrators, a group that provides services to state tax authorities. Finally, we turned to the Tax Foundation -- a nonpartisan tax research group -- for figures on tax burden, the average percentage of each state's residents' income that is paid in state and local taxes; the figures we use are for 2008.

State deficit estimate for fiscal 2010: $24.7 billion

Percent of general fund budget: 22.3%

State and local tax burden: 10.5%; Rank: 6

officially called registered warrants to private businesses, local governments and other taxpayers owed money by the state.

Voters' willingness to help ease the cash shortage has waned. In May, they voted down five ballot measures that included sales and income tax increases. Who could blame them? California has one of the worst unemployment rates in the country at 11.5%, its housing market has been decimated, and the state already raised taxes on sales by 1% to 8.25% and income by 0.25% (both of which expire in 2011). Gov. Arnold Schwarzenegger s latest budget plan includes steep spending cuts across the government and cutbacks in social services.

In a testament to California s grim predicament, one assemblyman s proposal to legalize marijuana for personal use and allow counties to tax it is gaining public support. It s one of the wacky things you might be able to get away with now, says Rueben.

State deficit estimate for fiscal 2010: $17.6 billion

Percent of general fund budget: 31.9%

State and local tax burden: 11.7%; Rank: 2

New York State Gov. David Paterson may have been unsuccessful in levying an 18% tax on soda and other sugary drinks in the name of combating obesity, but he s had a hand in raising taxes on plenty of other "sinful" items, including tobacco (up to 46% from 37%) and wine (up 58% per gallon or about two cents more per bottle).

For those living in New York, all these tax hikes can really add up. Second only to New Jersey, New Yorkers bear the second-highest tax burden thanks to a high income-tax rate of 7.85% (for those earning more than $200,000). And property and gas taxes are among the highest in the nation, according to the Tax Foundation. Nevertheless, shoppers can rejoice: The sales tax here remains relatively low at just 4%.

State deficit estimate for fiscal 2010: $6 billion

Percent of general fund budget: 27%

State and local tax burden: 7.4%; Rank: 47

Florida passed its budget in May with a not-so-pleasant surprise for smokers: a $1-per-pack hike (the first such increase in 19 years). Motorists also got hit with higher fees to renew a license or register a vehicle. It could have been worse, though. Senate lawmakers had proposed eliminating the sales tax exemption on items like bottled water and tickets to sporting events, both of which didn't make the cut.

Still, residents here aren't feeling as much tax pain as some of their peers in other states. Overall, Florida's tax burden is the third-lowest in the nation and it's one of eight states that imposes no individual income tax, according to the Tax Foundation. But those perks may be outweighed by the rest of Florida's economic situation. Home values are among the nation's hardest hit and the state's $6 billion budget deficit could mean more tax hikes are on the horizon.

State deficit estimate for fiscal 2010: $3 billion

Percent of general fund budget: 11.2%

State and local tax burden: 9.5%; Rank: 23

Just when Massachusetts was starting to shake its "Taxachusetts" nickname (it's ranked a middle-of-the-road 23rd in the Tax Foundation's tax burden assessment), the state is preparing to hike taxes on everything from alcohol to satellite TV.

Gov. Deval Patrick signed the budget last week, which included several new tax provisions. Among those that will affect residents most: a bump in the sales tax to 6.25% from 5%. That hike is expected to raise $759 million in new revenue, according to the Massachusetts Budget and Policy Center, a nonpartisan research group that studies state spending and taxes. Satellite TV subscribers are also getting hit with a 5% tax on satellite services.

State deficit estimate for fiscal 2010: $1.2 billion

Percent of general fund budget: 32%

State and local tax burden: 6.6%; Rank: 49

Nevada's freewheeling, low-tax past is coming back to haunt it like a bad hangover. The state levies no personal income tax and imposes some of the lowest taxes on businesses in the nation, says Bert Waisanen, a fiscal analyst at the National Conference of State Legislatures.

Nevada used to be able to afford being so generous with its residents. Revenue from tourism and gambling supported the state just fine. But now, as consumers would rather put their coins in a bank account than a slot machine, that revenue source is drying up. In fact, the state boasts the dubious honor of having the largest deficit in the country as a percentage of its budget 32%. It hiked the sales tax by 0.35% to 6.85% and taxes on hotel rooms are up 3%. It's even gambling with its business-friendly climate by raising taxes on businesses.