State tax collections suggest some economic growth
September and year-to-date Arkansas tax collections continue to suggest moderate growth in the state economy, with September marking the fifth consecutive month of gross general revenue gains.
According to the Arkansas Department of Finance & Administration, September gross revenues totaled $492.6 million, up 6.1% above September 2009 but 2% below forecasts.
Gross receipts — primarily sales and use taxes — totaled $171.8 million in September, up 5.6% compared to September 2009 and the sixth consecutive month of gains. However, the increase was 2.3% below forecast “due to an unanticipated $2.5 million dollar refund for overpayment of taxes in previous years,” DFA noted in its Monday ()ct. 4) statement.
“Growth contributions continue to be broad based across the major revenue sources of Individual Income Tax, Gross Receipts Tax, and Corporate Income Tax,” explained DFA. “The Individual Income Tax was up 2.8 percent over last year, including 4.9 percent growth in the economically correlated category of withholding income tax. The Gross Receipts tax composed primarily of sales and use tax was up 7.8 percent over last year and the gain was from both consumer and business spending in the state economy.”
Year-to-date (July-September) gross collections total $1.349 billion, up 5.9% above last year and up 1.2% above forecast.
Year-to-date gross receipts collections total $548 million, up 7.8% above the same period in 2009 and up 1% above forecast.
Year-to-date individual income tax collections totaled $593.9 million, 2.8% above the 2009 period and 3.8% above forecast.
Year-to-date corporate revenues were $97 million, up 38.3% from the 2009 period and 20.8% above forecast. from year-to-date FY 2010. Corporate income is above forecast by $16.7 million or 20.8 percent.
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. In fiscal year 2010 (July 1, 2009 – June 30, 2010), total state revenue was down $130.7 million (2.4%), but $73.3 million above budget estimates. The biggest declines were with individual income tax collections and sales and use tax collections — both serving as decent gauges of consumer spending.