Arkansas revenue report for October, 2007

This is the fourth monthly report of the fiscal year, and revenue is still up, even against the forecast. Collections of net available general revenues for October were $344.3 million. That is 1.6% above October, 2006 and 3.1% above forecast.

Gross receipts collections for October, which include sales/use taxes, totaled $177 million (about 2.8% below October, 2006 but 0.3% above forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last October we were collecting the full 6 cents. Gross receipts are a key indicator of consumer spending, which comprises roughly two-thirds of economic activity.

Individual income tax collections are 1.7% above projections (and 1.3% above October, 2006) and corporate income tax collections are 14.7% above forecast and 9.8% above October, 2006. Collections of individual income tax returns came in at $188.4 million, and corporate income tax collections were $24.8 million.

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