Arkansas tax revenue up 1.4% on strength of individual income tax collections

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by Talk Business & Politics staff ([email protected]) November 2, 2017 4:03 pm 395 views 

Fiscal year-to-date (July to October) total tax collections in Arkansas reached $2.079 billion, up 1.4% compared to the same period last year. Sales tax revenue, a sign of consumer and business spending, continues to lag with year-to-date collections 3.4% below forecast and the October tally 7.7% below forecast.

The report, issued Thursday (Nov. 2) by the Arkansas Department of Finance and Administration (DFA), showed that total year-to-date collections are 1.1% below forecast.

Sales and use tax revenue during the first four fiscal months totaled $790.3 million, up 0.3% compared to the same period in 2016, and 3.4% below forecast. Sales and use tax revenue during October was $191 million, down 3.9% compared with October 2016 and 7.7% below the budget estimate.

“Sales tax collection results were held lower by decline in business spending and weak consumer categories,” John Shelnutt, director of economic analysis and tax research for the DFA, noted in the report. “The utilities portion of sales tax collections was held lower by cooler weather during summer billings.”

The good news from the report was with individual income tax revenue. Year-to-date collections in the category totaled $983.8 million, up 2.8% over the same period in 2016 and 0.8% above forecast. October individual income tax revenue was $254.4 million, down 0.7% from previous period collections but 0.4% above the forecast.

Year-to-date corporate income tax revenue was $128 million, up 1.8% compared to the same period in 2016 but 7.1% below forecast. October collections of the tax totaled $21.3 million, down 48.7% compared with October 2016 and 44.7% below forecast.

OTHER TAX REVENUE SOURCES
Alcoholic beverage
July-Oct. 2017: $19 million
July-Oct. 2016: $18.5 million

Games of skill
July-Oct. 2017: $20.7 million
July-Oct. 2016: $18.9 million

Tobacco
July-Oct. 2017: $74.5 million
July-Oct. 2016: $74.2 million

Insurance
July-Oct. 2017: $22.3 million
July-Oct. 2016: $22.8 million

COLLECTIONS HISTORY
Total revenue in fiscal 2017 (July 2016-June 2017) was $6.55 billion, up 1.6% over the $6.45 billion in fiscal 2016.

Fiscal 2017: $6.47 billion
Fiscal 2016: $6.45 billion
Fiscal 2015: $6.47 billion
Fiscal 2014: $6.242 billion
Fiscal 2013: $6.214 billion