Volatility in Income Tax, Continued Weakness in Sales Tax, Slower Growth in Property Tax

Source: Lucy Dadayan, State Revenue Report – Second Quarter 2017, Report #109, December 2017

State and local government tax revenues grew modestly in the second quarter of 2017, although revenues from state and local personal income taxes declined and continued to show significant swings from one quarter to the next. State sales taxes and corporate income taxes also increased in the second quarter, as did state motor fuel taxes, but state sales tax revenues still lagged behind rates of increases in previous economic expansions. Finally, local government property taxes grew, although their rate of growth slowed from recent trends…..