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State Shinto refers to the use of the Shinto beliefs, during the Meiji Restoration and on to the point where Japan surrenders to the United States at the end of World War II, to encourage nationalistic movements throughout Japan. Unlike normal Shinto it was funded directly by the state in a period when the Japanese government refused to heavily fund other religions. The idea of the divinity of the emperor played heavily into this however even during this period there were still Shinto sects no involved in it.
"Shinto" refers to that actual religion practiced in the shrines and homes, the type practiced in modern Japan without the interference of the government.
Sources:
Religions of the World: Shinto by Stuart A. Kallen
Inside GHQ: The Allied Occupation of Japan and its Legacy by Takemae Eiji
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