“Tax revenues of U.S. state and local governments grew for the 13th quarter in a row at the end of 2012, rising 2.7 percent from the fourth quarter of 2011, according to Census data released on Tuesday.
Tax revenue totaled $399.7 billion, compared with $389.1 billion in the fourth quarter of 2011. For states alone, the increase was sharper. Their total tax revenue grew 4.9 percent to $193.9 billion in the final quarter of 2012.
The fourth-quarter growth, however, could indicate that revenue will drop or only increase mildly in the first quarter of 2013.
Because tax cuts passed under former President George W. Bush were set to expire at the end of 2012, many taxpayers sold off investments or made other financial moves in the waning days of the year to avoid potentially steep tax bills in 2013. The burst of income affected states, as individual income taxes provide more than one-third of total state tax revenue.
State and local individual income tax revenue shot up 9.4 percent in the fourth quarter from the final quarter of 2011 to$75.7 billion, according to the Census.
Of the states that levy individual income taxes, California brought in the highest amount, $14.28 billion, followed by New York’s $8.42 billion, and Illinois with $3.43 billion….”
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