by Calculated Risk on 6/29/2010 12:05:00 PM

The Census Bureau reported this morning that state and local tax revenues grew 0.8% in the first quarter 2010 compared to Q1 2009. This was the second straight quarter of growth compared to the same quarter of the previous year.

Individual income tax increased 2.7% compared to Q1 2009.

General sales tax revenues increased 0.3%.

Corporate income tax declined 5.4%.

Property taxes declined 0.6% (the first year-over-same quarter decline since 2003).

Click on graph for larger image in new window.

This graph shows state and local tax revenue on a rolling 4 quarter basis (this removes seasonality).

The three main sources of revenue are property taxes, sales taxes and personal income taxes. Property taxes tend to be the most stable, even with the sharp drop in real estate prices.

Most of the decline in revenue during the recession came from sharp declines in personal income and sales taxes.