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State revenues rise in January, sales tax collections slow Tuesday, Feb 5, 2008 Arkansas News Bureau LITTLE ROCK - State revenues rose 1.2 percent in January over a year ago, although state tax collections, an indicator of consumer spending, fell 7.6 percent, state fiscal officers reported Monday. Net available general revenues totaled $448.2 million, up $5.3 million over January 2007. Revenues were 5.8 percent above forecast. Gross receipts collections totaled $183.2 million, down $15.1 million, or 7.6 percent, since January 2007.. Collections missed the forecast by $8.9 million, or 4.6 percent. The fall in sales tax collection was partly due to a decline in materials and equipment purchases in the construction and durable goods sector, according to Richard Weiss, director of the state Department of Finance and Administration. "That could be a pre-staging of what's going on in the national economy," Weiss said. "That's the thing I think that probably has our attention the most." Sales tax reductions enacted last year, including a 50 percent reduction in the state sales tax on groceries, also contributed to the decline, the department said. The tax cut on groceries, from 6 percent to 3 percent beginning last July, cost the state an estimated $121 million. Individual income tax collections in January totaled $307.6 million, up $23.9 million, or 8.4 percent, compared to the same month last year. Collections were $25.2 million, or 8.9 percent, above forecast. Growth was attributed to one-time, non-recurring business transactions during the month, the department said. Corporate income tax collections totaled $9.3 million, down $3.6 million, or 27.7 percent, compared to January 2007. Corporate income tax collections were $2.1 million, or 18.3 percent below forecast. Tobacco tax collections rose 2.4 percent since last year to $11.8 million. From collections since the beginning of the fiscal year July 1, net available revenues total $2.7 billion, $31.3 million, or 1.2 percent, higher than by January 2007, and $121.6 million above forecast. |
