Census: 3Q State, Local Tax Revenues Down 6.7%
Third quarter tax revenue for state and local governments in 2009 fell 6.7% when compared with the third quarter of 2008, marking the fourth consecutive quarter of negative revenue growth, the U.S. Census Bureau announced today.
As in the past, the continuing revenue declines identified in the latest Quarterly Summary of State and Local Government Tax Revenue could prompt more budget cuts for state and local governments, which will likely negatively impact hospitals and other healthcare services that rely on public funding.
Tax revenue for the third quarter totaled $266.5 billion, compared with $285.6 billion reported for third quarter 2008. Of the four largest tax categories only property tax increased; general sales tax, individual income tax, and corporate income tax all continued to decline in the third quarter of 2009.
A further breakdown shows that:
- Total property tax revenue increased 3.5% in the third quarter of 2009 to $80 billion from $76.9 billion in the third quarter of 2008. Individual income tax growth was negative over the past four quarters, dropping by 11.7% from the same quarter the prior year. 2009 3Q revenue was $58.2 billion, down from $65.9 billion in 2008, 3Q.
- General sales tax growth was down 9%, resulting in the fourth consecutive quarter of negative sales tax growth. General sales tax revenue fell $6.9 billion from $76.6 billion in 2008, 3Q to $69.7 billion in 2009 3Q.
- Corporate income tax growth was negative once again, down 18%. 2009 3Q revenue was $9.5 billion, down from $11.6 billion in 2008 3Q.
John Commins is a senior editor with HealthLeaders Media.
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