Arkansas’ revenue picture looks strong as the state heads into the final month of its fiscal year. As a matter of fact, state gross revenues cleared the $5 billion mark for the first time and net revenues are poised to do the same by the time the state’s fiscal year closes at the end of June.
Year-to-date net available general revenues totaled $4,48 billion, up 5.6 percent above year ago levels and 4 percent above expectations, while gross revenues for the year topped $5.59 billion.
In May, state economist John Shelnutt said that sales tax collections improved and income tax collections held steady.
“Results for gross revenue were mainly driven by rebound in sales tax collections, which surged 7.0 percent compared to year ago May levels. This compares to only 0.9 percent in the year-to-date 11-month period of FY 2013 and a 2.5 percent decline recorded in April collections,” Shelnutt said in a memo on the subject.
“Individual Income tax collections also contributed to collection gains in May as withholding collections continued to perform well at 4.7 percent growth and overall results exceeded forecast by $3.8 million or 1.9 percent,” he said.
“Income tax refunds for both individual and corporate categories were above forecast in May. Individual refunds continued to catch up to expected levels for the year after delays in IRS processing early in the filing season. Year-to-date refund payments have almost matched prior year levels at this point but remain below forecast for the year,” Shelnutt added.
Year-to-date revenue categories, which include collections from July 1, 2012 through May 31, 2013, tracked as follows:
- Individual income taxes: $2.86 billion – 8.2% above last year and 6.2% above forecast
- Sales and Use taxes: $1.94 billion – 0.9% above last year but 1.4% below forecast
- Corporate income taxes – $359.5 million – 1.7% above last year and nearly flat compared to forecast
Other revenue categories for year-to-date include:
- Alcoholic taxes: $46.6 million – 3.3% above last year and 0.5% above forecast
- Tobacco taxes: $209.5 million – 4.9% below last year and 1.9% below forecast
- Insurance: $65.1 million – 1.1% below last year and 0.8% below forecast
- Racing: $2.8 million – 11.3% below last year and 2.9% below forecast
- Games of skill: $32.6 million – 31.8% above last year and 20.4% above forecast
You can access the full report here.