Boosted by growth in personal income taxes, Arkansas January revenue report continued to show marginal improvements for collections despite setbacks in consumer spending and corporate taxes.
Seven months into the state’s fiscal year, year-to-date net available general revenues topped $2.72 billion, up 1.4% from last year and 0.3% above forecast. For the year, individual income taxes and gross receipts are boosting the improved numbers.
State finance officials said that for the year personal income taxes and gross receipts are both trending 5-6% higher than a year ago, a signal that "broad-based gains across consumer and business spending" are taking place.
In January, however, there were mixed signals.
According to the revenue summary provided by the Arkansas Department of Finance and Administration, January individual income tax collections of $311 million rose 10.2% above last year’s levels and 1.9% above forecast.
Gross receipts, which reflect consumer spending, were down in January by 3.1% compared to a year ago. January’s collections totaled $173.9 million, 4.9% below forecast.
Volatile corporate income taxes, which make up a much smaller component of overall revenues but do reflect business health, totaled $11.6 million. That number reflects a 64% decrease from a year ago and is 48.6% below expectations. DF&A officials disclosed that there were unusually higher corporate tax collections last year due to one-time audit payments.