Arkansas revenue report for November, 2007

This is the fifth monthly report of the fiscal year, and revenue is a little below forecast. Collections of net available general revenues for November were $309.4 million. That is 2.4% below November, 2006 and 2.1% below forecast. Part of the decrease is attributed to an advance refunding of College Savings Bonds.

Gross receipts collections for November, which include sales/use taxes, totaled $170.7 million (about 2.7% below November, 2006 but 0.4% above forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last November 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 0.5% below projections (but 2.5% above November, 2006) and corporate income tax collections are 24.1% above forecast and 29.3% above November, 2006. Collections of individual income tax returns came in at $160.2 million, and corporate income tax collections were $5.6 million.

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