Combined tax revenue at local governments in fiscal 2009 is estimated to have dropped by ¥3.53 trillion to ¥35.34 trillion in the steepest year-on-year fall on record, the government said Thursday.

Tax receipts at prefectural and municipal governments in the year that ended March 31 fell 9.1 percent, a preliminary estimate by the Internal Affairs and Communications Ministry showed. It was the second consecutive year of decline.

The fall stemmed from the recession, which slashed corporate taxes collected by local governments by an estimated ¥3.64 trillion, or 43.2 percent, the ministry said.

Income tax payments by individuals are estimated to have dropped 1.6 percent, while local governments' consumption tax receipts slipped 2.5 percent.