State tax collections up; refunds could reduce gains
by April 4, 2011 9:32 am 61 views
Year-over-year gains in Arkansas tax collections may be offset by individual and corporate tax refunds later in the fiscal year, according to the Arkansas Department of Finance & Administration.
For the year (July 2010-Mar. 2011), gross collections total $4.023 billion, up 2.6% above the same period a year ago, according to the DFA report released Monday (April 4). The collections were 0.7% below forecasts.
March total collections reached $483.8 million, up 6.3% over March 2010, and 0.3% above forecasts.
Year-to-date gross receipts collections — primarily of sales and use taxes — totaled $1.566 billion, up 5.4% above the 2010 period but 0.8% below forecast.
March gross receipts collections were up 3.4%, totaling $166.5 million. The collections were 2.1% below forecasts.
Year-to-date individual income tax collections total $1.869 billion, 4.2% above the year ago period. March individual income tax collections totaled $203 million, 4.2% above year ago levels and 0.1% below forecast.
John Shelnutt, director of economic analysis and tax research at DFA, said the gross receipts gains represent “broad-based gains across consumer and business spending.” He also said the overall increase reflects “weakness” in the 2010 numbers.
He also warned that tax refunds could cut into the collection gains.
“Year-to-date results also reflect performance boosted by lower than expected refunds in both individual and corporate income tax. While collections are now slightly below forecast after nine months into the fiscal year, refunds running more than 15.0 percent below forecast are providing a boost to net available funds. A reversal of this refund trend is expected later in the filing season,” Shelnutt explained in his report.
The March report also benefited from a $7 million state treasury deposit of unclaimed property funds by the Arkansas Auditor’s office.
Year-to-date corporate income tax collections are $225.9 million, down 19% from a year ago, and 8.2% below forecasts. The decline, Shelnut noted, is because of a large one-time gain in the previous fiscal year.