State and local tax revenue grow for a second straight quarter
Tax revenues grew in the first quarter of 2010, marking the second straight quarter of growth, according to the U.S. Census Bureau’s “Quarterly Summary of State and Local Government Tax Revenue.” (See “Government tax revenues on the upswing” for information on tax revenue growth in the fourth quarter.)
Tax revenue for the quarter totaled $299.1 billion compared with $296.7 billion reported for in the first quarter of 2009.
State tax revenues were expected to surpass estimates around the U.S., as mentioned in the 2nd half 2010 Keating Report forecast on government budgets and spending, and now there is some solid evidence.
Individual income tax and general sales tax revenues increased, while corporate income tax and property tax revenue declined. The decline in property tax revenue is the first drop since 2003.
Documentary and stock transfer taxes — taxes on the registration of mortgages and securities — increased for the first time in 15 consecutive quarters.
Total property tax revenue was $107.7 billion in the first quarter of 2010. Local governments collected $105.5 billion in total property tax revenue. The state-collected portion of property tax revenue increased 30.8 percent to $2.2 billion, up from $1.7 billion in the first quarter of 2009.
Individual income tax growth was positive for the first time in six quarters, increasing by 2.8 percent from the same quarter the previous year. Revenue in the first quarter of 2010 was $58.2 billion, up from $56.7 billion in 2009’s first quarter.
General sales tax growth also saw gains for the first time in six quarters, growing by 0.3 percent. General sales tax revenue rose to $69.9 billion from $69.7 billion in the first quarter of 2009. General sales tax collections, however, remain below the 2006 level of $75.3 billion.
The top five states in revenue collections are California, New York, Texas, Pennsylvania and Florida. The Golden State pulled in $25.7 billion in the first quarter. South Dakota pulled in the least amount of revenue among the states: $303.4 million. (View the top states in tax collections for the first quarter of 2010.)
The Census Bureau’s quarterly survey has been conducted continuously since 1962. It provides quarterly estimates of state and local government tax revenue at a national level, as well as detailed tax revenue data for individual states. The information contained in the survey is the most current nationwide information available for government tax collections.
- View a ranking of the top states in tax collections during the first quarter of 2010.
Related Stories
- Keating Report on government budgets and spending, 2nd half 2010
- Government tax revenues on the upswing
- Fiscal aftershocks: 2010 Economic Outlook for U.S. State and Local Governments
- Working Harder to Spend Less: Cities cut back in the recession
- 2010 Keating Report on government budgets and spending
