State tax revenue up in December

Indicating continued growth in consumer spending, Arkansas tax revenue was up 1.5% in December and is up 2.4% for the first six months of the fiscal year.

The Arkansas Department of Finance & Administration reported Tuesday (Jan. 4) that year-to-date (July-December) total revenues are $2.638 billion, up 2.4% over the same period in 2009.

Year-to-date gross receipts collections — primarily sales and use tax collections — total $1.063 billion, up 7.8% above the 2009 period and up 0.6% above forecast.

“The Gross Receipts tax was up 7.8 percent over last year representing broad-based gains across consumer and business spending. Withholding income tax from payrolls was up 5.7 percent in the year-to-date period over the same period a year ago. Overall collections growth was up 2.4 percent, reflecting rebound from weakness in year ago collections. Collections growth adjusted for one-time events is notably higher since corporate income tax included $60 million one-time audit payments last year,” noted the revenue report from the Arkansas Department of Finance & Administration.

Year-to-date individual income tax collections total $1.177 billion, up 3.4% compared to the 2009 period and up 5.7% over forecasts.

Year-to-date corporate income tax revenues total $181.1 million, down 20.4% from the 2009 period but 8% above forecast. The decline compared to year ago levels is due to large, one-time gains in the prior year, DF&A noted in the report.

December total revenue was $439.5 million, up 2.4% above December 2009, but 4.4% below forecasts.

December gross receipts collections totaled $171.8 million, up 7.4% above November 2009. The collections, which reflect taxes on November sales, have seen increases for nine consecutive months.