Arkansas tax revenue up 3.4% in first six months of fiscal year

Year-to-date gross general tax revenue (July-December) totaled $3.376 billion, up 3.4% from the same period in 2018, with a gain in sales tax revenue and a rebound in auto sales numbers helping keep December numbers in the black.

According to figures posted Friday (Jan. 3) by the Arkansas Department of Finance and Administration (DFA), the year-to-date revenue was also 2.5% above the forecast. Surplus revenue (year-to-date net available revenue) is $93.1 million, noted the report.

Individual income tax revenue for the fiscal year-to-date is $1.594 billion, up 5.4% compared with the previous period and 1.3% above forecast. Income tax refunds year-to-date total $77.2 million, down 2.8% compared with the same period in the previous fiscal year.

Year-to-date sales and use tax revenue was $1.29 billion, up 3.3% compared with the previous cycle and 0.7% above forecast. Corporate income taxes for the year are $232.1 million, down $4 million from the previous year but 18.7% above forecast.

“Sales tax collections were 4.3 percent above last year with gains in both consumer-related categories and business-related categories. The motor vehicle portion of Sales Tax rebounded in December,” John Shelnutt, DFA director of economic analysis and tax research, noted in the report.

He also said income tax revenue was down primarily because of fewer year-end estimated payments.

DECEMBER NUMBERS
Gross general revenue collected in December totaled $613.6 million, up 1.3% compared with December 2018 and 0.9% above the forecast.

Individual income tax revenue in December was $276.9 million, up 3.1% compared with December 2018 but 4.2% below the forecast. Individual withholding tax revenue – an indicator of job and wage growth – was up 2.7% compared to December 2018.

Sales and use tax revenue during the month was $225 million, up 4.3% compared with December 2017 and 0.6% above the forecast. Corporate income tax revenue was $74.1million, down $13.5 million compared with December 2018 and $7 million above the forecast.

OTHER TAX REVENUE SOURCES
Alcoholic beverages
July-Dec. 2018: $30.6 million
July-Dec. 2017: $28.6 million

Games of skill
July-Dec. 2018: $19.1 million
July-Dec. 2017: $32.6 million

Tobacco
July-Dec. 2018: $110.4 million
July-Dec. 2017: $111.8 million

Insurance
July-Dec. 2018: $45.6 million
July-Dec. 2017: $44.4 million