U.S. state and local government tax revenues increased 1.8 percent in the second quarter from a year earlier, more slowly than the 2.2 percent average for the previous four quarters, the Rockefeller Institute of Government said in a report released on Friday.

The deceleration stemmed largely from reductions in state personal income tax revenue and probably helped prevent a record 11 states from filing timely budgets for fiscal year 2018.

Overall, revenue increased from sales taxes and rose substantially from corporate income taxes.

The Rockefeller Institute's preliminary data for the third quarter indicates stronger growth in personal income taxes at 4.7 percent and a modest rise in sales tax revenue at 2.7 percent.

The Rockefeller Institute cautioned that the growth in corporate income tax revenue in the second quarter might have stemmed from changes to filing deadlines. As a result, persistent declines in that revenue could reappear in the future.

States fared better than local governments in the second quarter, with tax revenue up 2.7 percent, compared with weak 1 percent average growth in the prior four quarters. Those governments benefited from higher revenue from sales and corporate income taxes.

Local tax revenue grew by 1.7 percent, more slowly than the 3.6 percent average quarterly increase during the prior year. Those governments collected less in sales taxes and faced slower growth in property taxes, their largest single source of revenue.