The U.S. Census Bureau reported this morning that state and local taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. revenues for the third quarter were up 5.2% over the third quarter a year ago, marking the fourth consecutive quarter of positive growth. For the twelve months ending September 2010, total state and local tax revenue was $1.278 trillion, still under the September 2008 peak of $1.307 trillion. (See Table 1.)
Table 1: Total State and Local Tax Revenue (in $ millions)
|
Twelve month period ending |
State & Local Tax Revenue |
Year-over-Year Growth |
|
September 2010 |
$1,278,397 |
1.77% |
|
September 2009 |
$1,256,121 |
(3.93%) |
|
September 2008 |
$1,307,489 |
4.09% |
|
September 2007 |
$1,256,083 |
5.57% |
|
September 2006 |
$1,189,853 |
7.66% |
|
September 2005 |
$1,105,199 |
7.19% |
|
September 2004 |
$998,198 |
7.78% |
|
September 2003 |
$926,161 |
3.67% |
|
September 2002 |
$893,395 |
0.21% |
|
September 2001 |
$891,557 |
3.45% |
Property tax collections grew 7.8% from 2009 to 2010; individual income taxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. , 4.8%; sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. , 4.0%; gasoline tax, 8.2%; cigarette tax, 8.3%; and alcohol tax, 1.9%. Corporate income taxA corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. collections fell by 3.3% over 2009.
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