Improved holiday sales boost tax collections

December sales were up, according to Arkansas’ January tax collection report, with year-to-date (July 2011 – Jan. 2012) gross tax revenue up 3.8% compared to the same period a year ago.

The report was released Thursday (Feb. 2) by the Arkansas Department of Finance & Administration.

Gross receipts collections (primarily sales taxes) in the January report — which reflect December transactions — totaled $182.5 million, up 4.9% compared to the January 2011 report. Total tax collections in the January report hit $552.5 million, up 4.3% compared to a year ago.

Year-to-date revenue totals $3.288 billion, up 3.8% compared to the same period in 2011. Year-to-date gross receipts collections are $1.249 billion, up just 1% .

“The sales tax results improved in January relative to forecast, but year-to-date results reflect a combination of generally weak retail sales earlier in the fiscal year and adverse one-time comparisons in business transactions in the first two months of the fiscal year,”  John Shelnutt, director of economic analysis and tax research at DFA, said in the tax report. “Offsetting some of the positive factors is a large increase in corporate refunds earlier in the year and recent increases in individual refunds in January.”

Year-to-date individual income tax collections total $1.553 billion, 4.4% above the year ago period and 2.6% above forecast. January individual income tax collections totaled $310.2 million, 0.3% below year ago levels and 0.7% below the forecast.

Year-to-date corporate income tax collections are $230 million, up 19.4% from a year ago, and 19.3% above forecast. January collections total $26.1 million, up 125% compared to the 2011 period.

Individual income tax refunds for the year total $86.8 million for the year, up 18.1% compared to the 2011 period. Corporate income tax refunds for the 2012 fiscal year total $47.3 million, up $16.7 million compared to the 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. The 2010 revenue 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.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2011-Jan. 2012: $18.7 million
July 2010-Jan. 2011: $18.9 million

Tobacco
July 2011-Jan. 2012: $140.9 million
July 2010-Jan. 2011: $141.1 million

Insurance
July 2011-Jan. 2012: $43.7 million
July 2010-Jan. 2011: $46 million

Games of skill
July 2011-Jan. 2012: $13.9 million
July 2010-Jan. 2011: $6.7 million

Racing (Oaklawn, Southland)
July 2011-Jan. 2012: $1.9 million
July 2010-Jan. 2011: $2 million