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State And Local Tax Revenues Continue To Grow, Reports Rockefeller Institute

All major sources of state and local tax revenues posted solid growth in the first quarter of 2015, according to the latest accounting from the Rockefeller Institute of Government. State tax revenue rose 5.8% compared with the first quarter in 2014; local tax revenues rose 1% on a four-quarter moving average, but local property-tax revenues grew 2.1% first quarter. Preliminary data for the second quarter suggest even stronger growth of 7.6% in state tax revenues.

At the state level, all major sources of revenue showed good gains in the first quarter. Personal income tax revenues grew 7.1%, corporate tax revenues were up 3.3%, sales taxes rose 5.2% and motor fuels taxes posted 4.4% growth. For the first three quarters of fiscal year 2015, ended in March, total state tax revenues increased 5.3%.

While the trends are mostly positive, the Institute does warn that recent declines in stock markets could adversely affect income tax receipts over the next few quarters.

State and local tax revenues help fund both operating and capital spending by many noncommercial segments including schools, colleges, healthcare and corrections.

The entire State Revenue Reports, including detailed trend data for individual states, can be found at rockinst.org.

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