April tax revenue down 28.3%, fiscal year-to-date revenue down 1.9%

Arkansas tax revenue in the first 10 months of the fiscal year (July 2019-April 2020) is down 1.9%, but revenue in the April report was down more than 28% because of COVID-19 economic disruption.

Year-to-date gross general tax revenue totaled $5.789 billion, down 1.9% from the same period in 2019, and 2.3% above a revised budget estimate, according to figures provided Monday (May 4) by the Arkansas Department of Finance and Administration (DFA).

Individual income tax revenue for the fiscal year-to-date is $2.88 billion, down 2.7% compared with the previous period and 3.4% above forecast. Income tax refunds year-to-date total $427.5 million, down 3.5% compared with the same period in the previous fiscal year, and 15.8% below the budget forecast.

Year-to-date sales and use tax revenue was $2.11 billion, up 3.2% compared with the previous cycle and 0.5% below the forecast. Corporate income taxes for the year are $403.7 million, down 15.9% from the previous year and 10.2% above forecast.

John Shelnutt, DFA director of economic analysis and tax research, said all monthly revenue categories were down because of the pandemic, and income tax numbers are down because of the filing deadline change.

“All major categories of revenue collections were down significantly compared to year ago levels as a result of the COVID-19 impact on consumption, jobs, and business activity rates. Income tax collections and refunds were down compared to a year ago as a result of changes in tax filing patterns related to the due date shift to July 15 from April 15,” Shelnutt noted. “Sales and Use tax collections were below forecast and year ago with restaurants and car sales leading the declines. The retail sector of sales tax collections benefited from the ‘stocking up’ effect by consumers while offsetting losses in other categories.”

APRIL NUMBERS
Gross general revenue collected in April totaled $687.8 million, down 28.3% compared with April 2019 and 17.8% above the forecast.

Individual income tax revenue in April was $366.4 million, down 39.1% compared with April 2019 and 28.1% above the forecast.

Sales and use tax revenue – an indicator of consumer spending – was $194.5 million, down 2.8% compared with April 2019 and 1.8% below the forecast. Corporate income tax revenue was $8.1 million, up $500,000 compared with April 2019 and $600,00 above the forecast.

Corporate income tax revenue in April was $98.6 million, down $23.2 million from April 2019 and $23.9 million above forecast.

OTHER TAX REVENUE SOURCES
Tobacco
July-April 2020: $182.8 million
July-April 2019: $177.1 million

Insurance
July-April 2020: $60.9 million
July-April 2019: $64.3 million

Alcoholic beverages
July-April 2020: $49.3 million
July-April 2019: $47.2 million

Games of skill
July-April 2020: $31.2 million
July-April 2019: $57.3 million