Payroll taxes, auto sales boost Arkansas revenue up 9.2% in February report
by March 3, 2020 3:18 pm 610 views
Better than expected payroll tax revenue and auto sales helped push state tax revenue above estimates. Year-to-date gross general tax revenue (July-February) totaled $4.531 billion, up 4.3% from the same period in 2019, and 2% above the budget estimate.
According to figures provided Tuesday (March 3) by the Arkansas Department of Finance and Administration (DFA), the surplus revenue (year-to-date net available revenue) is $185.3 million. The revenue is also $89.2 million above the budget estimate.
Individual income tax revenue for the fiscal year-to-date is $2.225 billion, up 6.4% compared with the previous period and 0.6% above forecast. Income tax refunds year-to-date total $184.4 million, up 9.1% compared with the same period in the previous fiscal year, and 1.5% above the budget forecast.
Year-to-date sales and use tax revenue was $1.708 billion, up 4% compared with the previous cycle and 0.6% above forecast. Corporate income taxes for the year are $278.9 million, up $3 million from the previous year and 21.1% above forecast.
“Payroll Withholding Tax collections were better than expected for the month with high gains from payday timing effects compared to the same period in the prior year. Sales tax collections were $3.6 million below forecast due to weakness in business-related sectors. The motor vehicle portion of the Sales Tax experienced high growth,” John Shelnutt, DFA director of economic analysis and tax research, noted in the report.
FEBRUARY NUMBERS
Gross general revenue collected in February totaled $501.5 million, up 9.2% compared with February 2019 and 1.7% above the forecast.
Individual income tax revenue in February was $271.6 million, up 14.8% compared with February 2019 and 3.5% above the forecast.
Sales and use tax revenue – an indicator of consumer spending – during the month was $193.1 million, up 4% compared with February 2019 but 1.9% below the forecast. Corporate income tax revenue was $8.1 million, up $500,000 compared with February 2019 and $600,00 above the forecast.
OTHER TAX REVENUE SOURCES
Tobacco
July-Feb. 2020: $143.8 million
July-Feb. 2019: $143.1 million
Insurance
July-Feb. 2020: $48.4 million
July-Feb. 2019: $46 million
Alcoholic beverages
July-Feb. 2020: $40.1 million
July-Feb. 2019: $37.7 million
Games of skill
July-Feb. 2020: $24.8 million
July-Feb. 2019: $43.9 million