NORWICH – The local economy shows signs that it’s still improving.

An annual report of the amount of unpaid town and county taxes shows more people are paying their taxes for the first time in three years. Also, sales tax collections continue their upward trend, with 5 percent more collected compared to this time last year. The county took in $1.38 million in May. So far in 2012, collections are up 2.85 percent.

While there’s still more than $5 million the county must cover by year’s end, about $114,000 more owed taxes were paid than in 2011. School districts and villages are made whole each year when the amount of taxes collected falls short of the amount billed.