Arkansas begins new fiscal year with a 0.8% dip in tax revenue

Total Arkansas tax revenue during the first month of the new fiscal year (July 2015-June 2016) was $466.8 million, down 0.8% compared to July 2014 but 1% above the budget forecast.

“Collections are down compared to year ago results as expected, largely because of payroll withholding rates from updates to the state withholding tax tables,” John Shelnutt, director of economic analysis and tax research for the Arkansas Department of Finance and Administration, said in his July 2015 revenue report issued Tuesday (Aug. 4).

Tax collections during the recently completed fiscal year 2015 (July 2014-June 2015) totaled $6.47 billion, up 3.5% above the previous fiscal year and up 1.1% compared to budget estimates. The year marked the fifth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $191.6 million. One-time revenue totaled $65.5 million. The surplus would have been $126.1 million without such revenue.

Individual income tax collections during July totaled $200.9 million, down 5.8% from July 2014 and 0.4% above the budget forecast. July sales and use tax collections were $193.1 million, up 4.1% compared to July 2014 and 2.1% below the budget forecast. Income taxes and the sales and use tax collections are the two primary sources of state revenue.

Corporate income tax revenue for the July was $20.4 million, up more than 10% compared to the same period in the previous fiscal year, but 23.7% below the budget forecast.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2015: $5.4 million
July 2014: $5.7 million

Games of skill
July 2015: $4.1 million
July 2014: $3.3 million

Tobacco
July 2015: $20.9 million
July 2014: $21 million

Insurance
July 2015: $700,000
July 2014: $1 million

COLLECTIONS HISTORY
Tax collections during fiscal year 2015 (July 2014-June 2015) totaled $6.47 billion, up 3.5% above the previous fiscal year and up 1.1% compared to budget estimates. The year marked the fifth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $191.6 million.

Tax collections during fiscal year 2014 (July 2013-June 2014) totaled $6.242 billion, up 0.5% above the previous fiscal year and up just 0.2% compared to budget estimates. The year marked the fourth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $78.7 million.

Tax collections during fiscal year 2013 (January 2012-January 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.

Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the January 2010-January 2011 period. State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.