Arkansas revenues climbed 3.9% higher than one year ago at the midway mark in the state’s fiscal year.
Through December 2012, year-to-date net available general revenues totaled $2.43 billion, up $90.8 million or 3.9% above year ago levels. The revenue total was $22.1 million or 0.9%, above forecast.
December was a strong month for collections, particularly individual income taxes, which had an anomaly of a payroll timing issue to boost growth.
“Results were mainly driven by Individual Income tax collections which grew 17.4 percent compared to last year. Payroll timing shifts accounted for much of this gain, as seen in the 19.6 percent year-over-year gain in withholding,” said John Shelnutt, Director of Economic Analysis & Tax Research for the Arkansas Department of Finance and Administration. “This observed volatility in the monthly pattern is largely canceled out in an annual context and in the official forecast. Estimated payments were only slightly above forecast with 1.2 percent year over year growth.”
Still, the month led to a robust report.
December net available general revenues topped $456.5 million, up 9% above last year and 4% above forecast.
Sales and use taxes in December were $180.9 million, up compared to last year by 2.5% but underperformed the forecast by 1.6%.
DF&A analysts warned that storm-related effects on collections from the recent winter weather will mainly be reflected in tax results for January.
Corporate income tax collections, which hit $62.8 million, also underperformed the forecast in December with a 5.9% decline in year-over-year terms and 9.2% below forecast.
December individual income tax collections totaled $243 million, up 17.4% compared to last year and 9% above forecast.
OTHER TAX COLLECTIONS
July 2012 – Dec. 2012: $24.5 million
July 2011 – Dec. 2011: $24 million
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July 2012 – Dec. 2012: $16.3 million
July 2011 – Dec. 2011: $11.7 million
July 2012 – Dec. 2012: $116.7 million
July 2011 – Dec. 2011: $124.4 million
July 2012 – Dec. 2012: $42.2 million
July 2011 – Dec. 2011: $42.9 million
Michael Tilley with The City Wire contributed to this report.