The Census Bureau reported this week that state and local tax revenues increased by 5.21% in the third quarter compared to a year ago, which is the largest quarterly increase since the fourth quarter of 2007. Here's a breakdown by category for the third quarter 2010 vs. 2009:
Individual income tax: +4.78%
Property taxes: +7.77%
General sales taxes: +4.01%
Motor fuel taxes: +8.21%
Tobacco taxes: +8.25%
Alcoholic beverage taxes: +1.90%
Corporation income taxes: - 3.26%
The increases in state tax revenues in the third quarter provide more evidence that economic activity (income, retail sales, etc.) continues to improve, and we can probably look forward to even greater improvements in the fourth quarter.
Update: See related report in today's WSJ.