State tax collections see reduced rate of decline (Updated)
by February 2, 2010 3:33 pm 49 views
Total tax collections in Arkansas continued to decline in January, but the rate of decline moderated compared to December.
Year-to-date (July 2009-January 2010) gross revenues totaled $3.102 billion, down 2.4% from the same period in the 2008-2009 period, and 0.2% above the forecast, according to a memo from the Arkansas Department of Finance & Administration. The year-to-date decline in the July-December 2009 was 3%.
Updated info: Matt DeCample, spokesman for Gov. Mike Beebe, said the positive thing about the report is that “we’ve met forecast” revenues in January. However, he said Beebe is cautioning that some of the January revenue was “one-time money” that may not support a trend going forward.
“As the governor said earlier today, ‘One good month does not a year make,’” DeCample said.
Gross receipts collection — primarily from sales and use taxes — for the fiscal year total $1.166 billion, down 7.9% compared to the same fiscal year period in 2008-2009. The year-to-date decline in the July-December 2009 was 9.2%.
January total collections were $523.3 million, up 0.8% above January 2009. The January collections is only the second month in the first six months of the fiscal year to see a monthly gain in total collections. Gross receipts of $179.4 million in January represented no significant change from January 2009.
The relative improvements in tax collections could reduce the threat of more budget cuts. On Jan. 11, Gov. Mike Beebe announced a second round of budget cuts totaling $106 million. The first round of cuts, announced Oct. 20, cut $100 million from budget spending.
Year-to-date individual income tax collections were $1.42 billion, $66.1, or 4.4% below the same period last year and 0.3% above forecast.
Year-to-date corporate income taxes totaled $260.1 million, an increase of 19.7% from the same period last year.
“Several large, non-recurring payments in Corporate Income Tax were anticipated in the forecast and subsequently collected,” noted the DF&A memo.