Arkansas revenue report for January, 2008

This is the seventh monthly report of the fiscal year, and revenues continue to come in strong regardless of the national economic landscape (note that we're en route to a 300+ point "correction" today). The increase this month is driven by individual income tax collections -- both gross receipts collections and corporate income tax collections are down. Collections of net available general revenues for January were $448.2 million. That is 1.2% above January, 2007 and 5.8% above forecast.

Gross receipts collections for January, which include sales/use taxes, totaled $183.2 million (about 7.6% below January, 2007 and 4.6% below forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last January 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 8.9% above projections (and 8.4% above January, 2007) and corporate income tax collections are 18.3% below forecast and 27.7% below January, 2007. Collections of individual income tax returns came in at $307.6 million, and corporate income tax collections were $9.3 million.

Click here for the report