FY 2009 Arkansas tax collections see 2.1% dip

As expected, the national recession resulted in a rare decline in net revenue from tax collections for Arkansas’ fiscal year 2009 (July 2008-June 2009).

The Arkansas Department of Finance and Administration reported Thursday (July 2) that net available general revenues totaled $4.434 billion in FY 2009, a 2.1% decrease from FY 2008 collections.

“The decline in Net Available funds in FY 2009 from FY 2008 marks one of the few
annual declines in revenue year-over-year in decades. In recent years, the only other
annual decline in revenues occurred in FY 2002,” noted a statement from John Shelnutt, director of economic analysis and tax research for the Arkansas DFA.

Shelnutt said in his report that the largest sources of general revenue, individual Income and gross receipts (sales and use tax) both fell below year ago levels.

Fiscal year 2009 individual income tax collections totaled $2.7 billion, $57.4 million or 2.1% below FY 2008.
 
In fiscal year 2009, gross receipts totaled $2.097 billion, an decrease of $25.9 million or 1.2% below FY 2008. Gross receipts consist primarily of sales and use taxes.
 
Fiscal year 2009 corporate income taxes totaled $382.6 million, an increase of 28.6 million, or 8.1% above FY 2008.

Tax collections in June, the final month of the fiscal year, saw a big dip. According to the DFA report, net available revenues in June were $435 million, down $55.9 million, or 11.4% from June 2008.