Arkansas tax revenue falls almost 22% in July because of 2020 tax shift
Tax collections in July, the first month of Arkansas’ fiscal year, were down almost 22% with the numbers “distorted” because of the pandemic-relief income tax shift in 2020, according to Tuesday’s (Aug. 3) report from the Arkansas Department of Finance and Administration (DFA).
Arkansas ended fiscal year 2021 (July 2020 – June 2021) with a revenue surplus of $945.7 million thanks in part to the COVID-19 induced shift in a tax filing deadline from June to July that pushed some of fiscal 2020 income tax payments into 2021.
Gross general revenue in July was $600.3 million, down 21.7% compared with July 2020, but 9.4% above the budget forecast. Individual income tax revenue in July was $241.7 million, down 45% compared with July 2020 but 13.2% above the budget forecast.
“(Individual income) Collections decreased by $198.1 million, or 45 percent compared to last year as a result of the tax filing date shift from April to July 2020,” John Shelnutt, DFA director of economic analysis and tax research, noted in the report.
Sales and use tax revenue, an indicator of consumer spending, was $260.1 million in July up 10% compared with July 2020 and up 7.2% over the budget forecast. Shelnutt said collections from motor vehicle sales tax were up 4.7% from last year, and restaurant collections were up 30.1% “as recently recovered sectors outpace earlier recoveries in other sectors.”
Corporate income tax revenue totaled $5.7 million, up $3.3 million compared with July 2020 and $1.1 million above the budget forecast.
OTHER REVENUE SOURCES
July 2021: $18.9 million
July 2020: $20.2 million
July 2021: $7.1 million
July 2020: $6.5 million
Games of skill
July 2021: $3.7 million
July 2020: $2.6 million
July 2021: $400,000
July 2020: $600,000