Arkansas revenue report for February, 2008

This is the eighth monthly report of the fiscal year, and revenues came in above forecast. Collections of net available general revenues for February were $190.9 million. That is 3.4% below February, 2007 but 0.8% above forecast.

Gross receipts collections for February, which include sales/use taxes, totaled $165.2 million (about 1.9% below February, 2007 but 1.5% above forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last February 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 10.3% above projections (and 16.5% above February, 2007) and corporate income tax collections are 12% above forecast and 3.2% below February, 2007. Collections of individual income tax returns came in at $188.3 million, and corporate income tax collections were $3.6 million.

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