A strong month of income tax collections and improving sales taxes led the state of Arkansas to a solid position at the six-month mark of the fiscal year.
Officials from the Department of Finance and Administration noted the strong December surge, but warned that there is still pause for concern with economic conditions.
“The key components of individual income tax are now ahead of forecast for the year, including withholding tax and estimated payments. The sales tax results improved in December, but year-to-date results reflect a combination of generally weak retail sales earlier in the fiscal year and adverse one-time comparisons in business transactions in the first two months of the fiscal year,” the DF&A report said.
In December, individual income tax collections increased 10.4% over the previous year to $206.9 million. That total was 7.7% above forecast. Corporate income taxes were up 27.7% above previous year levels to $66.7 million and were 24.7% above forecast.
Gross receipts — which include sales and use taxes — rose 4% versus the previous year and were up 0.7% above forecast to $178.6 million.
Those three categories brought year-to-date net available revenue to $41.7 million, a 9.7% increase over last year and 8.1% above forecast.
Other notes from the December revenue report included:
Year-to-date tobacco tax collections, a small component of general revenue, totaled $124.4 million, up 1.2% above last year.
Year-to-date soft drink excise taxes, which are used for the state Medicaid Program Trust Fund, totaled $24 million, a 0.3% increase from last year.
The Educational Adequacy Fund, which receives a portion of net collections, totaled $212.5 million, which is no change from the previous year.