Four months into the state’s fiscal year, revenues are trending higher but sales tax collections remain sluggish.
The Arkansas Department of Finance and Administration’s October revenue report showed that a variety of income tax categories offset a shortfall in expected sales tax revenue during the month.
For October, net available general revenues totaled $372.8 million, up 4.8 percent above last year and 2.2 percent above forecast.
Year-to-date, net available general revenues topped $1.69 billion, a 4.3 percent gain above year ago levels and 2.3 percent above projections.
“October results were boosted by gains in income tax categories and a variety of smaller revenue sources while offsetting a shortfall in sales tax,” said John Shelnutt, director of DF&A’s Economic Analysis & Tax Research division.
“Individual and corporate income tax both exceeded forecast and refunds were less than expected. Refunds accounted for a sizable portion of the net available result compared to forecast. Gains in the two economic-related revenue lines of sales tax and payroll withholding were below projections, following elevated gains last month. The swings in growth are a reminder that one month results do not represent a trend in collections or the state economy,” Shelnutt added.
Here are the highlights of the monthly report:
- October Gross General Revenues: October collections totaled $458.1 million, an increase of $15.6 million or 3.5 percent above last year and $2.6 million or 0.6 percent above forecast.
- October Individual Income Tax collections totaled $226.4 million. Collections increased by $8.3 million, or 3.8 percent compared to last year. With respect to the forecast, collections were $3.2 million or 1.4 percent above forecast.
- Individual withholding increased 2.2 percent compared to last year.
- October Individual Income Tax Refunds totaled $16.5 million, $1.3 million or -7.2 percent below last year and $2.2 million or -11.7 percent below forecast. Refund amounts below forecast add to net available fund results.
- October Sales and Use Tax Collections: October collections totaled $171.8 million, an increase of $0.6 million or 0.3 percent above last year. Collections were below monthly forecast levels by $6.8 million or -3.8 percent.
- October Corporate Income Tax collections totaled $25.6 million, an increase of $3.3 million from year ago, and $2.6 million or 11.3 percent above forecast.
You can access the full report at this link.