Arkansas tax revenue up 2.1% in July

Arkansas’ 2012 fiscal year is off to a good start with July tax collections reaching $434.8 million, up 2.1% over July 2010.

However, the revenue during the quarter was 0.8% below budget estimates and a measure of consumer spending (gross receipts collections) fell during July, according to an Arkansas Department of Finance & Administration report released Tuesday (Aug. 2).

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 — both serving as decent gauges of consumer spending.

Tax collections throughout the 2011 fiscal year showed improvements in consumer spending. Gross receipts collections (primarily sales and use taxes) totaled $2.072 billion, up 4.6% above the 2010 period, but 0.5% below forecast.

In July 2011, gross receipts totaled $181.2 million, a decline of 3.7% compared to July 2010 and 6.7% below forecasts.

The U.S. Bureau of Economic Analysis reported Tuesday (Aug. 2) that consumer spending fell 0.2% in June, the first decline in 20 months. The BEA also reported that personal income in June increased by $18.7 billion, or 0.1%.

Individual income tax collections in July totaled $193.6 million, up 6.8% over July 2010 and up 1.4% over budget forecasts.

Corporate income tax collections reached $25.2 million, up 9.4% compared to July 2010 and up 9% above the forecast.

The tobacco tax generated $23.4 million in July, up over the $20.4 million in July 2010.