State-Local Tax Revenue Grew in Q1 of 2010, But 12-Month Property Tax Collections Dropped for First Time Since 2003
June 30, 2010
Tax revenues for state and local governments grew in the first quarter, according to newly released Census data for the first quarter of 2010 (historical table included). That’s two quarters in a row of growth, possibly relieving a bit of the pressure that state and local governments have felt to raise taxes or lower spending. Among tax sources, individual income tax and general sales tax revenues were the gainers; corporate income tax revenue declined significantly, and property tax revenues declined slightly.
Even though the housing bubble popped in early 2008, starting a wave of foreclosures and rapid declines in housing values, local governments have mostly succeeded at keeping property tax revenue coming in by raising the rates. But the new Census data reveals that although the drop was slight, the 12-month total from March 2009 to March 2010 recorded the first decline in total property taxes since 2003.