Year of Recovery

The rise in sales and use tax revenue - Maryland's second largest source of general fund
revenue - was broad-based, covering every category and fueled by consumer confidence and
lower interest rates.

An improving Sales & Use Tax Collections

job market gave
Marylanders a
greater feeling of
security to make
major purchases
during fiscal year
1994 and helped to
spur home buying.

The steady
improvement in
housing sales also
yielded rising
revenues from
property transfer
taxes. Sales of
home-related
goods, such as
appliances and
furniture, were
healthy.

Gains in the capital goods sector reflected improved corporate profits and the resulting
investment in equipment and facilities, especially in the telecommunications industry.

The improved economy also generated a strong showing for franchise tax receipts from
financial institutions and gross receipts taxes paid by public utilities.

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