Arkansas revenue report for December, 2007

This is the sixth monthly report of the fiscal year, and revenue sharply increased due to shifts in payroll timing for individual income tax collections. Collections of net available general revenues for December were $415.2 million. That is 7.6% above December, 2006 and 13.8% above forecast.

Gross receipts collections for December, which include sales/use taxes, totaled $178.0 million (about 3.1% below December, 2006 but met the forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last December 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 19.8% above projections (and 27% above December, 2006) and corporate income tax collections are 16.9% above forecast and 11% above December, 2006. Collections of individual income tax returns came in at $222.3 million, and corporate income tax collections were $58.1 million.

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