Arkansas tax revenue up 2.6%

Arkansas tax collections fiscal year-to-date total $4.908 billion, up more than $200 million compared to the year-ago period thanks to an almost $130 million increase in individual income tax collections.

In the fiscal year (July 2011-April 2012) report released Wednesday (May 2), the gross general revenue of $4.908 billion was above forecast by 2.6%, with individual income tax collections totaling $2.435 billion, up 5.6% compared to the 2010-2011 period and 4.1% above the budget forecast.

“Among major revenue categories, both individual and corporate income taxes are above forecast and sales tax collections (gross receipts) are down year-to-date relative to forecast,” noted John Shelnutt, head of the Department of Finance and Administration’s Economic Analysis & Tax Research division.

Shelnutt also noted: “The key components of individual income tax are on forecast or ahead for the year, including withholding tax and estimated payments. The sales tax results improved again in April 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.”

Year-to-date gross receipts collections — primarily sales and use taxes — totaled $1.773 billion, an increase of $33.9 million or 2% from last year, but 1.1% below forecast. The gross receipts tally is an indicator of consumer spending.

Year-to-date corporate income taxes totaled $332.5 million, an increase of $34 million or 11.4% from year-to-date last year. Corporate income is above forecast by 10.7%.

Total revenues during April were $718.2 million, up 5% compared to April 2011. The April individual income tax collections were $466.1 million and gross receipts collections totaled $181.1 million, up 6.7% and 4.5%, respectively.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2011 – April 2012: $25.5 million
July 2010 – April 2011: $25.4 million

Games of skill
July 2011 – April 2012: $22.3 million
July 2010 – April 2011: $11 million

Tobacco
July 2011 – April 2012: $198.4 million
July 2010 – April 2011: $199.6 million

Insurance
July 2011 – April 2012: $64.9 million

July 2010 – April 2011: $66.9 million

COLLECTIONS HISTORY
Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the July 2010-June 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. 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.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.