Arkansas tax collections up 4% year-to-date

February tax collections in Arkansas totaled $393.6 million, up 6% from February 2011, with fiscal year-to-date collections up 4%.

The collections report, released Thursday (March 2) by the Arkansas Department of Finance & Administration (DFA), shows that tax collections between July and February (fiscal year 2012) total $3.682 billion, up 4% compared to the same period in fiscal 2011 and 2% above the budget forecast.

Gross receipts collections (primarily sales taxes) in the February report — which reflect January transactions — totaled $167.9 million, up 3.4% compared to the February 2011 report. Gross receipts collections in the fiscal year total $1.417 billion, up 1.3% compared to the 2011 period and down 1.7% compared to budget forecasts.

“The sales tax results improved slightly in February relative to forecast, but year-to-date results reflect a combination of generally weak retail sales earlier in the fiscal year and adverse onetime comparisons in business transactions in the first two months of the fiscal year,” according to the report John Shelnutt, economic analysis and tax research official with the DFA.

Shelnutt also said business and consumer “components of sales tax collection growth have been inconsistent over the year.”

Reducing funds available are a “surge” in individual tax refunds and corporate refunds, Shelnutt explained.

Year-to-date individual income tax collections total $1.747 billion, 4.9% above the year ago period and 2.9% above forecast. February individual income tax collections totaled $193.8 million, 8.8% below year ago levels and 5.8% below the forecast.

Year-to-date corporate income tax collections are $234.1 million, up 18.3% from a year ago, and 18.1% above forecast. February collections total $4 million, down 20.3% compared to the 2011 period.

Individual income tax refunds for the year total $240.1 million for the year, up 28.6% compared to the 2011 period. Corporate income tax refunds for the 2012 fiscal year total $49.6 million, up $18.1 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-Feb. 2012: $20.8 million
July 2010-Feb. 2012: $20.6 million

Tobacco
July 2011-Feb. 2012: $159.1 million
July 2010-Feb. 2012: $159.5 million

Insurance

July 2011-Feb. 2012: $44.1 million

July 2010-Feb. 2012: $46.5 million

Games of skill
July 2011-Feb. 2012: $16.2 million
July 2010-Feb. 2012: $7.9 million

Racing (Oaklawn, Southland)
July 2011-Feb. 2012: $2.2 million
July 2010-Feb. 2012: $2.4 million