Third-quarter tax revenue for state and local governments was down 6.7 percent through Sept. 30, marking the fourth consecutive quarter of decline, meaning more states could turn to insurer assessment fees to bolster their budgets.
The 2009 tax revenue in the third quarter totaled $266.5 billion, compared with $285.6 billion reported for the third quarter of 2008, according to the Census Bureau. Revenue has been dropping as the recession cuts into tax receipts from corporate earnings, personal incomes and sales.
In Maryland, general sales tax revenue fell 8.8 percent in the third quarter, compared with the same period in 2008. Individual income tax revenue fell 10.9 percent, while corporate net income tax slid 38.4 percent.
In Virginia, sales tax revenue was off 6.4 percent, individual income tax revenue was down 10.2 percent and corporate net income tax decreased 7.7 percent.
In the District, sales tax revenue fell 10.6 percent, taxes on individual income dropped 19 percent and corporate net income tax was down 30.4 percent.
Nationwide, general sales tax revenue in the third quarter was down 9 percent. Individual income tax revenue declined 11.7 percent, and corporate income tax revenue dropped 18 percent.
Property tax revenue was the only one of four main tax categories to rise, climbing 3.5 percent as changes in real estate assessments used to set tax rates trailed declines in market prices.
