New data from Census Bureau reveals divergent state and local government revenue trends in the second quarter. The housing bust continues to weigh on property taxes, the chief revenue source for local governments. Property taxes are off 1.2% from the same period last year while overall local revenue grew by only 1.3%. Meanwhile, revenue from the three main state taxes grew for the 7th straight quarter, with personal income taxes up by 17.4% (12.5% in Connecticut); sales taxes by 4.4% (4.1% in Connecticut), and corporate income taxes by 20.5% (56.3% in Connecticut).
A recent presentation by Robert Ward of the Rockefeller Institute of Government includes this and other charts showing effects of the “Great Recession” on jobs and tax revenue.
