3Q 2010 tax collections up nationwide

Tax collection information released Wednesday (Dec. 29) by the U.S. Census suggests economic gains in the third quarter of 2010.

According to the report, overall state and local tax revenues grew in the third quarter compared to the third quarter of 2009, marking the fourth straight quarter of positive growth. Property tax, general sales tax and individual income tax revenues increased, while corporate income tax revenue declined. The decline in corporate income tax revenue is the third consecutive quarter of decline.

In Arkansas, general sales tax collections at the state level were up 7.8% in the quarter, individual income tax collections were up 3.2%, corporate net income taxes received were up 38.2%, and the severance tax total was up 41.5%.

It’s likely the fourth quarter report will show continued gains for Arkansas. The Arkansas Department of Finance & Administration reported Dec. 2 that year-to-date (July-November) total revenues are $2.198 billion, up 2.4% over the same period in 2009. Year-to-date gross receipts collections — primarily sales and use tax collections — total $891.9 million, up 7.8% above the 2009 period and up 0.9% above forecast.

Oklahoma saw the general sales tax totals up 9.8% in the quarter, individual income tax collections up 3.4%, corporate net income tax up 33.4%, and the severance tax up 26.4%.

During the 2010 third quarter 2010 tax revenues for state and local governments totaled $284.3 billion, up 5.21%, but down compared to the $285.6 billion in the third quarter of 2008.

Following is a summary of collections in various tax categories.
• Total property tax revenue was $90.5 billion in the third quarter of 2010, an increase of 7.8% from $83.9 billion in the 2009 period. The amount of total property tax revenue collected from local governments was $87.7 billion. The state-collected portion of property tax revenue increased 15.9% to $2.8 billion, up from $2.4 billion in the 2009 period.

• Individual income tax collections increased 4.8% to $60.5 billion compared to $57.8 billion in the 2009 period.

• General sales tax revenue totaled $72.1 billion, up 4% from $69.3 billion in the 2009 period.

• Corporate income tax continued to decline for the third consecutive quarter, down 3.3%, marking nine quarters of decline out of the past 12 quarters. Third quarter revenue was $9.3 billion, down from $9.6 billion in the 2009 period.

• Severance taxes collected in the first quarter totaled $2.1 billion, a decrease of 2.9% from the third quarter of 2009.

• Motor fuels sales tax revenue increased for the second consecutive quarter by 8.2% compared with the third quarter of 2009.

• Tobacco sales tax grew 8.3% and alcoholic beverage sales tax revenue was up 1.9%, when compared with the third quarter of 2009.