Consumer spending in Arkansas is trending almost flat, but overall Arkansas tax collections for the first seven months of the fiscal year totals $3.409 billion, or 3.7% higher than the same period in 2012.
Individual income tax collections for the fiscal year remain positive, with proceeds in the first seven months at $1.672 billion, or 7.6% higher than the 2012 period. The state’s monthly revenue report was released Monday (Feb. 4) the Arkansas Department of Finance and Administration. The overall revenues were 1.5% above forecast.
The report shows that gross receipts collections — primarily sales and use taxes — for the first seven months of the state’s fiscal year (July 2012-Jan. 2013) is $1.237 billion, up just 0.2%, and 1% below forecast.
“Sales and Use taxes were down compared to last year by -1.0 percent and underperformed the forecast by -5.0 percent,” John Shelnutt, head of the Department of Finance and Administration’s Economic Analysis & Tax Research division, said in the report. “Storm-related effects in December would be counted in January collections, along with portions of the holiday shopping season.”
A December snow storm that hit Christmas Day left more than 200,000 without power – primarily in central Arkansas – for several days.
January tax collections totaled $583 million, up 5.5% compared to January 2012, and 6.3% above the forecast. Individual income tax collections during January were $341.4 million, up 10.1%.
Sales and use tax collections totaled $178.3 million, down 1% compared to December 2011. The collections, a good measure of consumer spending, were 5% below forecast.
Year-to-date corporate income taxes totaled $191.4 million, down 6.1% from the 2011 year-to-date last year, and below forecast by 3.6%.
OTHER TAX COLLECTIONS
July 2012 - Jan. 2012: $29.1 million
July 2011 - Jan. 2011: $28.5 million
Games of skill
July 2012 - Jan. 2012: $19.1 million
July 2011 - Jan. 2011: $13.9 million
July 2012 - Jan. 2012: $131.9 million
July 2011 - Jan. 2011: $140.9 million
July 2012 - Jan. 2012: $42.8 million
July 2011 - Jan. 2011: $43.7 million
Fiscal year 2012 marked the second year of year-over-year gains. Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the July 2010-June 2011 period.
State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period. Total state revenue of $5.43 billion in fiscal year 2010 was 2.4% below the previous fiscal year and marked the second consecutive year of revenue decline.
The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.