Healthy October Pulls Overall Tax Revenues Slightly Ahead Of Last Year

October state tax collections rose a healthy 8.1% above last year and pulled 4.7% above forecast, but that simply moved year-to-date numbers into a slightly better position.

The Arkansas Department of Finance and Administration released its October revenue report that showed net available general revenues totaling $402.8 million for the month, up $30.0 million above last year and $18.2 million above forecast.

“October results were above forecast in the two main categories that have been below forecast year-to-date,” said John Shelnutt, economist and director of DF&A’s Economic Analysis and Tax Research division. “Sales tax collections accounted for $7.7 million of the gain for the month against forecast. Corporate Income tax collections were $2.3 million above forecast. Individual Income tax collections were up 1.7 percent from year ago results and below forecast by 1.3 percent.”

“Among smaller revenue sources, tobacco was above year ago levels and above forecast. Gaming results were slightly above forecast and moderately ahead of year ago revenue,” Shelnutt said.

Year-to-date totals in various revenue categories painted incremental gains.

• Year-to-date Net Available General Revenues: Year-to-date net available general revenues total $1.725 billion, $31.3 million or 1.9% above year ago levels. After four months into the fiscal year, net available revenue is above forecast by $11.1 million or 0.6%.
• Year-to-date Gross General Revenues: Year-to-date gross collections total $1.992 billion, representing an increase of $32.9 million or 1.7% above last year. Gross general revenues are above forecast by $2.2 million or 0.1%.
• Year-to-date Individual Income Taxes: Year-to-date individual income tax collections total $943.8 million, $26.0 million or 2.8% above last year’s collections and $1.7 million or 0.2% above forecast. Collections for individual withholding are up 4.0% from year ago levels.
• Year-to-date Sales and Use Tax Collections: On a year-to-date basis, sales and use taxes total $741.3 million, an increase of $2.2 million or 0.3% from last year and $5.7 million or -0.8% below forecast.
• Year-to-date Corporate Income Taxes: Year-to-date corporate revenues total $132.7 million, a decrease of $1.0 million or -0.7% from year-to-date in the prior year. Corporate income is below forecast by $7.1 million or -5.1%.

You can access the full report here.