Arkansas tax revenue up almost 4% through first five months of fiscal year

Year-to-date gross general tax revenue (July-November) totaled $2.763 billion, up 3.9% from the same period in 2018, with a healthy gain in sales tax revenue and payday timing helping boost the numbers in November’s report.

According to figures posted Tuesday (Dec. 3) by the Arkansas Department of Finance and Administration (DFA), the year-to-date revenue was also 2.9% above the forecast. Surplus revenue (year-to-date net available revenue) is $87.5 million, noted the report.

Individual income tax revenue for the fiscal year-to-date is $1.317 billion, up 5.9% compared with the previous period and 2.9% above forecast. Income tax refunds year-to-date total $71.7 million, up 3.3% compared with the same period in the previous fiscal year.

Year-to-date sales and use tax revenue was $1.065 billion, up 3.1% compared with the previous cycle and 0.7% above forecast. Corporate income taxes for the year are $158 million, up $9.5 million from the previous year and 23.1% above forecast.

John Shelnutt, DFA director of economic analysis and tax research, said the November sales tax revenue was up despite a decline in sales tax revenue related to auto sales.

“Individual Income Tax and Sales Tax were above forecast in November. Individual Income Tax collections benefited from growth in payroll withholding and a positive payday timing factor in November. Sales tax collections were 4.5 percent above last year with gains in gains in consumer-related categories and mixed results in business-related categories. The motor vehicle portion of Sales Tax was down in November after two high-growth months in September and October,” Shelnutt noted in his memo.

NOVEMBER NUMBERS
Gross general revenue collected in November totaled $515.2 million, up 4.7% compared with November 2018 and 1.5% above the forecast.

Individual income tax revenue in November was $244.4 million, up 8.5% compared with November 2018 and 1.8% above the forecast. Individual withholding tax revenue – an indicator of job and wage growth – was up 8.5% compared to November 2018.

Sales and use tax revenue during the month was $214 million, up 4.5% compared with November 2017 and 1.5% above the forecast. Corporate income tax revenue was $4.9 million, down $4.5 million compared with November 2018 and $2.2 million below the forecast.

OTHER TAX REVENUE SOURCES
Alcoholic beverages
July-Nov. 2018: $25.7 million
July-Nov. 2017: $24 million

Games of skill
July-Nov. 2018: $16.3 million
July-Nov. 2017: $27.3 million

Tobacco
July-Nov. 2018: $91.8 million
July-Nov. 2017: $92.1 million

Insurance
July-Nov. 2018: $44.9 million
July-Nov. 2017: $44 million