CENSUS BUREAU: State and Local Government Tax Revenue Increased 7.2% in Q2 2013

CENSUS BUREAU: State and Local Government Tax Revenue Increased 7.2% in Q2 2013

Second quarter 2013 tax revenues for state and local goverrnments, as compared to second quarter 2012, increased 7.2 percent, marking the fifteenth consecutive quarter of positive year-over-year growth, according to a report issued Tuesday, Sept. 24, 2013 by the U.S. Census Bureau. Tax revenue for the quarter totaled $382.2 billion, as compared to $356.7 billion for the second quarter of 2012.

The largest tax subcategories, (property, individual and corporate income, and general sales tax) all showed growth over the same quarter in 2012.

The estimated total second quarter 2013 state and local property tax revenue of $91.9 billion (±3.9) is not statistically different from property tax revenue of $90.1 billion (±4.1) in the same quarter of 2012. Local governments collected $88.5 billion of total property tax revenue.

Individual income tax revenue continued to grow compared to the same quarter of the previous year. State and local individual income tax revenue in the second quarter of 2013 was $114.0 billion, up 18.2 percent from $96.4 billion in the second quarter of 2012.

General sales and gross receipts tax rose 4.2 percent in the second quarter of 2013 to $82.2 billion (±1.8), which is not statistically significant from $78.9 billion (±1.6) in the second quarter of 2012.

Corporation net income tax revenue increased 14.5 percent from the same period in the prior year. Revenue for the second quarter of 2013 was $20.2 billion, up from $17.6 billion in the second quarter of 2012.

Total state tax revenue was $259.6 billion in the second quarter of 2013, up 9.4 percent from the $237.2 billion reported in the same quarter of 2012. Individual income tax, at $106.2 billion, was up 19.4 percent from the same quarter of 2012, which was largely driven by California’s personal income tax revenue. 

The second largest category of state tax revenue, general sales and gross receipts taxes, accounted for $68.8 billion, an increase of 4.7 percent from the same quarter in 2012. At $17.5 billion, corporation net income tax collections increased by 10.8 percent from the same quarter in 2012.

Overall, in the second quarter of 2013, individual income tax accounted for 40.9 percent of total state tax revenue, general sales and gross receipts taxes accounted for 26.5 percent of total state tax revenue, and all other tax revenue accounted for 32.6 percent of total state tax revenue.

Property tax, a predominant tax source for local governments, comprised 24 percent of total state and local government taxes in the second quarter of 2013.

Since 2009, individual income tax collections have been much higher than general sales and gross receipts tax collections in quarter two of each year.

 In 2009, each quarter experienced a decrease in both individual income and general sales and gross receipts taxes. Starting with the first quarter of 2010, there has been an increase in both tax subcategories each quarter.

 Effective January 1, 2013, the sales tax in California temporarily increased by 0.25 percent for the next 4 years and personal income tax for California residents with an annual income over $250,000 temporarily increased for the next 7 years. This measure, known as Proposition 30, was decided by California voters during the state-wide general election on November 6, 2012.   

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