The decline in Sales and use tax collection has slowed in the last couple of months. Using a weighted composite for the four largest states (California, Texas, New York, and Florida, real growth slowed from an annual decline rate of -1.64% in February to -0.91% in March. Texas grew at a rate of 5.27% in April after adjustments for inflation which is down from the hot pace of 8.37% it averaged for 2007. New York, moving in the opposite direction, came in at 1.63% in March after averaging -3.51% for 2007. California is rapidly improving with a decline of 1.67% in April, an improvement from its low reached in February of -5.54%. California declined on average of -2.03% in 2007. Florida continued its fall, declining -7.45% in March, its lowest point since 2000. Florida averaged a decline of -2.70% in 2007.
The improvements in the sales tax mirror the recent economic indicators showing a lukewarm economy, but not one that is in a deep recession.
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