Arkansas’ tax vault is holding $151 million more in revenue than expected through the first eight months of the fiscal year thanks in large part to an improving jobs picture, according to state officials.
Year-to-date (July 2017-February 2018) gross revenue totaled $4.233 billion, up $151 million, or 3.7%, compared to the same period in the previous fiscal year.
Almost 17% of the year-to-date gain was captured with February collections, according to the recent revenue report from the Arkansas Department of Finance and Administration (DFA). February gross revenue was $457.9 million, up $25.5 million, or almost 6% compared to February 2017. Payroll tax (withholding) revenue was up almost 7% compared to February 2017.
“Among the major categories, Individual Income Tax, the largest single category of gross collections exceeded forecast by $6.9 million, largely due to continued high growth in Withholding payroll tax,” John Shelnutt, DFA director of Economic Analysis and Tax Research, noted in the February report.
Year-to-date individual income tax revenue totaled $2.072 billion, up 5.4% compared to the same period in the previous fiscal year and 2.2% above the budget estimate.
The December jobs report from the U.S. Bureau of Labor Statistics showed continued jobs growth in Arkansas. December jobs were an estimated 1.306 million, up 10,510 jobs from December 2017, and up 25,542 jobs compared to December 2016. The state’s jobless rate in December was 3.7% unchanged from November and the same rate since June 2017.
Year-to-date sales and use tax revenue – a sign of consumer spending and confidence – totaled $1.596 billion, up 6.2% compared with the same period in the prior fiscal year, but almost 12% below the forecast.
Year-to-date corporate income tax revenue was $229.7 million, up $3.7 million compared to last year and 5.3% below the budget forecast.
February individual income tax revenue was $231.9 million, up almost 8% compared to February 2017 and 3% higher than the budget forecast. February sales and use tax revenue was $190.3 million, up 4.1% compared to February 2017 but 4% below the forecast.
OTHER TAX REVENUE SOURCES
July-February 2018: $36.8 million
July-February 2017: $35.8 million
Games of skill
July-February 2018: $40.8 million
July-February 2017: $37.5 million
July-February 2018: $145.5 million
July-February 2017: $144.8 million
July-February 2018: $45.2 million
July-February 2017: $45.1 million