Rising Revenues

The Federation of State Tax Administrators this month reports that, with 33 states responding, the monthly revenue survey shows total median state revenues increasing by 5.8% in July, over the previous year. Revenues increased at a median rate of 4.6% and 5.0%, during the past 12- and 3-month period, respectively. During the past 3 months, individual income tax collections grew at a median rate of 5.8% over the previous year, while withholding taxes increased by 4.9%. Sales and corporate taxes grew by 4.1% and 4.4%, respectively. However, there may be signs of slowing. Sales and withholding taxes have seen slower growth when compared to the trend 3 months ago. Indeed, several states are estimating flat or declining trend growth in sales or withholding taxes.