State tax revenues have declined for a seventh consecutive month. In the past two months, net state tax receipts have declined by a little more than four percent compared to July and August of 2008.
According to the Legislative Services Agency analysis, it amounts to a $41.5 million decrease, fueled in large part by a nearly nine percent decline in sales and use tax payments to the state in the month of August.
Personal income tax payments to the state were up slightly, by less than $2 million. Corporate taxes were up a bit as well, by a little less than a million dollars.
A three-member panel of financial experts is scheduled to meet October 7 to reevaluate their official estimate of state tax revenue for the current budgeting year. Their decision could be the catalyst for cuts in the state budget.