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Arkansas’ Net Available Tax Revenue Surplus Tops $400 Million

Arkansas Department of Finance and Administration building in Little Rock.
KUAR News

Arkansas’ tax revenue picture continues to be impressive, with gross revenue for the first seven fiscal months (July-January) up almost 10% compared with the same period in 2019-2020. January revenue was up more than 20% above forecast.

The Arkansas Department of Finance and Administration reported Tuesday that gross revenue for fiscal year-to-date is $4.419 billion, up 9.7% compared with the same period in 2019-2020 and up 12.1% over the budget forecast. Tuesday’s report also showed a fiscal year-to-date revenue surplus – “net available revenue” collected beyond what was estimated – of $421.8 million.

Individual income tax revenue was $2.173 billion in the first seven fiscal months, up 11.2% compared to the same period in 2019-2020 and up 13.1% over the budget forecast. Sales and use tax revenue – an indicator of consumer spending – during the first seven months was $1.629 billion, up 7.5% compared with the same period in 2019 and up 8.3% above budget forecast.

Corporate income tax revenue during the first seven months of the fiscal year was $314.7 million, up $44 million compared with the same period in 2019-2020, and up 28.8% from the budget forecast.

“Individual Income Tax was above forecast by $86.8 million, with Estimated Payments and Payroll Withholding Tax running notably ahead of projections. Sales Tax Collections were above forecast by $16.5 million, in a broad based gain with continued growth in retail and vehicle sales,” John Shelnutt, DFA director of economic analysis and tax research, noted in a memo with the January report.

JANUARY REVENUE

Gross revenue in the month totaled $722 million, up 10.4% compared with January 2020, and 21.7% above the forecast.

Individual income tax revenue totaled $401.3 million in January, up 11.8% compared with January 2020, and 27.6% above the forecast. Sales and Use tax revenue in January totaled $236.9 million, up 5.6% compared with January 2020 and up 7.5% above the forecast. Corporate income tax revenue was $51 million in January, up $12.4 million compared with January 2020, and $23 million above the forecast.

The previous fiscal year (July 2019-June 2020) ended with $369.4 million in net available revenue more than expected. Fiscal year 2020 tax revenue ended down just 2.5% despite several months in early 2020 of economic disruption resulting from COVID-19 shutdowns. The revenue was 4.1% above the revised forecast. Gross revenue in the previous fiscal year was $6.967 billion, 2.5% below fiscal year 2019, but up $272.5 million more than the forecast.

OTHER REVENUE SOURCES

Tobacco
July-January 2020: $131.2 million
July-January 2019: $127.9 million

Alcoholic beverages
July-January 2020: $39.4 million
July-January 2019: $35.9 million

Games of skill

July-January 2020: $18 million
July-January 2019: $22 million

Insurance
July-January 2020: $46.4 million
July-January 2019: $46.5 million

This story comes from the staff of Talk Business & Politics, a content partner with KUAR News. You can hear the weekly program on Mondays at 6:06 p.m.
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