State and local governments saw their tax collections rise in the fourth quarter, according to new data from the U.S. Census Bureau.
Tax revenues for state and local governments were up 2.2 percent in the fourth quarter of 2010, compared to the fourth quarter of 2009, marking the fifth consecutive quarter of positive growth. Tax revenue for the quarter totaled $380.3 billion, compared to $372.2 billion in the fourth quarter of 2009.
General sales tax, individual income tax, and corporate income tax showed positive growth, while property tax collections declined for the first time since the first quarter of 2010.
Corporate income tax increased for the first time since the first quarter of 2009, up 14.3 percent after a decline in nine out of the past 12 quarters. Fourth quarter revenue was $10.3 billion, up from $9 billion in the fourth quarter of 2009. Despite the growth in corporate tax revenue in Q4 of 2010, compared Q4 of 2009 the overall amount of corporate income tax collected in calendar year 2010 dropped 4.9 percent from $47.9 billion in 2009 to $45.5 billion.
Despite the higher tax revenue collections, however, many state and local governments still face severe budget deficits.
