A sixth straight month of improving sales tax collections and higher individual and corporate income taxes carried the May revenue report to a rosier picture.
The state of Arkansas May revenue summary highlights the 11th month of the state's fiscal year, which ends June 30.
Year-to-date net available general revenues — after dedicated revenues are subtracted — stood at $4.24 billion, up 3.5% from the previous year and 0.3% above the revised forecast released on May 9.
“The major revenue categories of individual and corporate income tax and gross receipts are up relative to year ago levels. The amount above forecast is primarily accounted for by lower than projected income tax refunds and stronger than expected collections of corporate income, tobacco, and gross receipts taxes,” said John Shelnutt, head of Economic Analysis and Tax Research with the Arkansas Department of Finance and Administration.
In May, net revenues came in at $336.3 million, a 6.6% increase from the previous year and 4.1% above forecast.
Gross receipts rose 4.7% to $174.2 million, ahead of forecast by 1.4%. Individual income taxes totaled $205.8 million during May, a 4.3% jump from last May, but were 0.9% below the revised forecast. Corporate income taxes topped $21 million, a 3.9% improvement from last May and 17.4% above expectations.
DF&A officials estimate that the state's budget surplus at the end of June could top $67.5 million.
You can access the full report here.