Economic Picture Brightens in GA, 10 Other States
I've been reporting on the significant gains in state tax revenues for the month of August (as of today, eleven states have reported gains, see this CD post), as a sign of solid economic recovery that is generating higher state collections from personal income taxes, sales taxes, excise taxes, etc. Here's another example from Georgia, which just reported August tax revenues this afternoon:
"Georgia’s economy is showing signs of awakening from a nearly three-year slumber.Gov. Sonny Perdue on Wednesday announced that state tax and fee collections in August were nearly 13 percent above the same month a year ago. It is the third consecutive month of positive revenue collections, but the first to show double-digit gains. Revenues were up 3.8 percent in June and 4.7 percent in July. The biggest improvement in August came from one of the most important sources: individual income taxes, which were up 24 percent over August 2009, a difference of more than $120 million.
Gross sales tax collections were also up 3.3 percent, but corporate income taxes actually fell by 158 percent to the point the state refunded more money to businesses than it took in.
Other gains were made in tobacco taxes, up 12.4 percent, and motor fuel taxes, which were up 22 percent.
The news is good, too, for the fiscal year, where tax collections are up 8.6 percent over the same period last year. The state budget for fiscal 2011, which began July 1, is predicated on a 4 percent growth in tax collections."