Total tax collections in Arkansas continued to decline in February, with the rate of decline higher than that seen in January.
Year-to-date (July 2009-Feburary 2010) gross revenues totaled $3.467 billion, down 3% from the same period in the 2008-2009 period, and 0.1% below the forecast, according to a memo from the Arkansas Department of Finance & Administration. The year-to-date decline in the July 2009-January 2010 was 2.4%.
Gross receipts collection — primarily from sales and use taxes — for the fiscal year total $1.324 billion, down 7.8% compared to the same fiscal year period in 2008-2009. The year-to-date decline in the July 2009-January 2010 period was 7.9%.
February total collections were $365 million, down 7.8% below February 2009, and 1.8% below forecast.
The declines in tax collections have already resulted in two budget cuts. On Jan. 11, Gov. Mike Beebe announced a second round of budget cuts totaling $106 million. The first round of cuts, announced Oct. 20, cut $100 million from budget spending.
Year-to-date individual income tax collections were $1.598 billion, $89 million, or 5.3% below the same period last year and 0.2% above forecast.
Year-to-date corporate income taxes totaled $264.2 million, an increase of 19.8% from the same period last year, but 0.5% below the forecast.