Foodservice Equipment Reports

State Tax Revenues Increase For Seventh Straight Quarter

State tax revenues continued to improve in the third quarter of 2011, according to preliminary data from the Rockefeller Institute of Government, based in Albany, N.Y. Data from 48 early-reporting states show an overall 7.3% nominal gain over the third quarter of ’10, with only three states reporting falling revenue. It is the seventh straight quarter of increases, following five quarters of declines during The Great Recession. The preliminary third-quarter increase is down from a robust 10.8% gain in the second quarter.

Both personal income tax and sales tax receipts improved during the quarter, the Institute said, with income-tax revenues rising more than 9%.

After seven quarters of growth, overall state tax revenues have recovered to pre-recession figures. Most states have not yet returned to peak levels, however, because those levels came several months into The Great Recession. State tax revenues help fund operating and capital budgets for a wide array of noncommercial foodservice operators, from schools and colleges, to corrections and healthcare. The severe budget strain most states have been under have led to widespread cuts in funding for many operators.

And while state tax revenues are recovering, local tax receipts have fallen into negative territory in recent quarters. Data on local tax trends will be released later.