Arkansas Revenues Well Above Forecast In May

Arkansas’ monthly revenue picture improved in May as collections in all general categories came in above forecast, boosted by fewer individual and corporate tax refunds following tax season, according to a monthly finance report from the state Department of Finance and Administration.

For the month of May, net available revenues came in at a robust $335.9 million, $20.5 million or 6.5% above last year and $40.3 million, a whopping 13.6% above forecast.

According to state finance officials, gross collections were up across the board in all major categories as refunds in both individual and corporate income taxes were down more than 25% compared to a year ago.

Overall, gross general revenues in May were $427.5 million, an increase of $2.2 million or 0.5% better than last year and $14.8 million or 3.6% above forecast.

Individual income tax collections for the month totaled $198.9 million, down by $4.7 million, or -2.3 percent compared to last year. However, collections came in $25.2 million or 14.5 percent above forecast.

On the corporate side of the ledger, tax collections were $8.7 million, an increase of $1.5 million from year ago, and 29.5% above forecast.

Sales and use tax collections for May jumped 4.4% or 7.9 million to $188.6 million. Those totals were above monthly forecast levels by $6.9 million or 3.8%.

Tax refunds in May that came in after the April 15 tax deadline totaled $31.2 million. That total is $11.1 million or -26.2% less than a year ago and $15.6 million below forecast.

For the year, net available general revenues total $4.66 billion, $180.2 million or 4% above year ago levels. After eleven months into the fiscal year, net available revenue is above the revised forecast by $40.3 million or 0.9%.

Here are additional year-to-date results:

• Year-to-date gross general revenues total $5.8 billion, representing an increase of $174.2 million or 3.1% above last year. Gross general revenues are above forecast by $14.8 million or 0.3%.
• Year-to-date individual income tax collections total $2.9 billion, $84.6 million or 3% percent above last year’s collections and $25.2 million or 0.9% above forecast.
• Year-to-date individual income tax refunds total $492.1 million, down $2.0 million or -0.4% compared to last year and $15.6 million or -3.1% below forecast. Refund amounts below forecast contribute to the state’s bottom line.
• Year-to-date sales and use taxes total $2,038.4 million, an increase of $45.4 million or 2.3% from last year and $6.9 million or 0.3& above forecast.
• Year-to-date corporate revenues total $412.8 million, an increase of $38.6 million or 10.3 percent from the comparable period in the prior year. Corporate income is above forecast by $2.0 million or 0.5%.
• Year-to-date corporate income tax refunds total $41.7 million, a decrease of $16.4 million compared to the same year-to-date period last year.

You can read the full May revenue report here.