Arkansas tax revenue increased 7.5% for the first nine months of fiscal year and year-to-date revenue – “net available income” in excess of estimates – was $ 549.9 million.
The Arkansas Department of the Treasury (DFA) reported Friday (April 2) that gross sales for the current fiscal year (July 2020 to March 2021) are $ 5.482 billion, up 7.5% over the same period in the Years 2019-2020 and 2019 correspond to an increase of 11.3% compared to the budget forecast. Part of the profit includes a shift in collections when the 2020 tax due date moved from April to July, according to the DFA report.
Individual income tax receipts were $ 2.697 billion for the first nine fiscal months, an increase of 7.3% over the same period in 2019-2020 and an increase of 12% from budget forecast. Sales and use tax revenue – an indicator of consumer spending – was $ 2.064 billion for the first eight months, up 7.7% from the same period last year and 8.6% more than budgeted.
Corporate tax revenue was $ 344.4 million for the first nine months of fiscal year, an increase of $ 39.4 million over the same period in 2019-2020 and an increase of 26.6% from budget guidance .
MARCH REVENUE
Gross sales for the month were $ 569.7 million, a 0.1% decrease from March 2020 and a 9.3% decrease from forecast.
Individual income tax revenue was $ 286.5 million in March, a 1.1% decrease from March 2020 and a 13.5% decrease from forecast. The decrease is largely due to the late electronic filing of taxes due to Congress-approved tax law changes and related changes in the timing of refunds, according to the DFA report.
“Individual refunds were $ 30.6 million above forecast in March, after falling $ 72 million below forecast in February. An additional catch-up process in filing returns and processing refunds is expected in April, “noted John Shelnutt, director of economic analysis and tax research for the FDFA, in a memo with the March report.
Shelnutt also cited other factors that reduced income tax revenues.
“Withholding tax revenue declined 5.1 percent year over year. This is due to tax cuts due to changes in the withholding tax formula and the ongoing impact of COVID-19 on the labor market,” he said.
Sales tax revenue for sales and usage was $ 212.7 million for March, up 2.3% from March 2020 and up 3.6% from forecast. Corporate tax revenue was $ 24.3 million for March, down $ 1.9 million from March 2020 and $ 6.1 million higher than forecast.
“Sales tax revenues for motor vehicles recovered from the adverse weather conditions in the previous month,” said Shelnutt.
The previous fiscal year (July 2019 – June 2020) ended with net sales of USD 369.4 million more than expected. Despite several months at the beginning of 2020, tax revenues for fiscal year 2020 only fell by 2.5% due to economic disruptions as a result of COVID-19 shutdowns. Sales were 4.1% above the revised forecast. Last fiscal year gross sales were $ 6.967 billion, 2.5% lower than fiscal 2019, but $ 272.5 million higher than forecast.
OTHER SOURCES OF REVENUE
tobacco
July-March 2020: $ 166.1 million
July-March 2019: $ 164.9 million
Alcoholic drinks
July-March 2020: $ 48.3 million
July-March 2019: $ 44.4 million
Games of skill
July-March 2020: $ 23.4 million
July-March 2019: $ 28.9 million
insurance
July-March 2020: $ 65.5 million
July-March 2019: $ 60.4 million