Arkansas revenue report for May, 2008

This is the 11th monthly report of the fiscal year, and revenues are meeting the forecast in some areas and sluggish in others. Collections for the fiscal year are $3.6 million above forecast and $113 million above last year's collections as of this month.

Collections of net available general revenues for May were $296.0 million. That is 6.2% below May, 2007 but 4.2% above forecast. Gross receipts collections for May, which include sales/use taxes, totaled $176.7 million (about 1.0% below May, 2007 but 6.4% above forecast). We are only collecting one half of the sales tax on food and food ingredients now, whereas last May 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 6.7% above projections (but 3.4% below May, 2007) and corporate income tax collections are 82.4% below forecast and 80.5% below May, 2007. Collections of individual income tax returns came in at $184.8 million, and corporate income tax collections were $3.9 million.

Click here for the report