State tax revenue update shows a “marginally” improving economy and outlook

The latest tax revenue estimates reported to the Legislature’s Revenue and Taxation Interim Committee today showed that general and education fund revenues (mostly sales & use tax and personal/corporate income taxes, respectively) for fiscal year 2011 came in $80 million higher than originally projected. Additionally, transportation fund revenues (mostly gas taxes and automobile-related fees) are estimated to be $10 million lower than originally projected. These are still preliminary estimates, so the final numbers may yet change, but they indicate an economic environment that is improving, although slowly.

One legislator summarized what these figures mean for Utah’s economy by saying that property values and unemployment in the state are improving “marginally.” There was agreement with the sentiment that Utah’s economy is improving, but only slowly.