State tax collections in South Carolina grew by about 7 percent in 2004, up more than $400 million from the previous year, according to numbers released Wednesday from the U.S. Census Bureau.

Overall, tax collection revenue increased in every state in 2004, and analysts say it's a sign that the economy is improving.

According to the 2004 Annual Survey of State Government Tax Collections, South Carolina raked in $6.8 billion in taxes during the fiscal year. Some $6.3 billion was collected during fiscal year 2003.

"I think it means that our economy recovered last year," said Bill Gillespie, chief economist with the state's Board of Economic Advisors. "More people are earning more money."

Sales taxes and individual income taxes made up more than two-thirds of all state tax collections, according to the Census Bureau.

South Carolina collected $2.7 billion in sales taxes in 2004, about $170 million more than in 2003. Individual income tax collection stood at $2.4 billion in 2004, a $105 million hike from the previous year.

Overall, state governments nationwide took in $44 billion more, an 8 percent swell.

Christopher Pece, a chief financial analyst with the Census Bureau, said this is good news from the standpoint of more revenue for the states and a better picture than in previous years.

"(In 2003), it was pretty much a mixed bag," Pece said.

Gillespie said the March 2005 numbers are also promising. At the end of March, the state's revenues were up 6.7 percent. Sales taxes rose 4.5 percent.