Lower Income Tax Refunds Give Boost To Arkansas Revenue Forecast

Boosted by activity in income tax collections and refunds, state revenues climbed 18% higher than year-ago figures and 15% above forecast, but curb your enthusiasm.

The February monthly revenue report released by the Arkansas Dept. of Finance and Administration showed that individual income taxes were only up 0.2%, but refunds were way below last year’s levels and forecast, which led to roughly $31.5 million more than expected.

Volatile corporate income tax collections were about $1 million higher than last year.

Gross receipts – a signal of consumer spending – topped $162.4 million, up 2.7% above last year’s levels, but 3.2% below forecast.

State finance officials reported that total February net available revenues topped $214.1 million leading only to a slight rise in year-to-date collections.

With 8 months of collections in the current fiscal year, net available general revenues – the amount allowed for discretionary spending after mandatory revenues are accounted for – stood at $2.936 billion, up 1.2% above forecast and a modest 2.4% above net collections one year ago.

You can access the full DF&A report at this link.