Tuesday, October 19, 2010

Tax Revenues Now Growing in Most States

Albany, N.Y. — "The second quarter of 2010 represented the second period in a row that states reported overall gains in tax collections — following five straight quarters of decline — according to a new study by the Rockefeller Institute of Government (see chart above). 

Overall state tax revenues grew by 2.3 percent in the second quarter of 2010, according to the Institute’s latest State Revenue Report. Thirty-four states reported gains in revenue during the second quarter, with 12 showing double-digit growth. Preliminary data for July and August suggest the third quarter of 2010 may show another revenue increase, with early figures from 42 states showing gains averaging 2.8 percent.

The two-quarter trend has begun to reverse the overall declines reported by states from the fourth quarter of 2008 through the end of 2009. Both of the largest sources of tax revenue for states produced gains in the April-June period, with sales tax collections rising by a strong 5.7 percent and personal income taxes up by 1.6 percent. The sales tax increase during this year’s second quarter marked the largest such year-over-year gain since the third quarter of 2006, but sales tax revenues were still down 4.2 percent from the same period in 2008."


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