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State Tax Revenue Falls 22% in May

1 min read

The Arkansas Department of Finance and Administration on Thursday reported May net available general revenue of $512.7 million, down $142.4 million, or 21.7%, from a year ago.

The figure was $4.6 million, or 0.9%, above forecast.

Individual income tax collections were 1.9% above forecast, mainly from additional extension payments. May collections totaled $303.6 million, or $5.5 million above forecast, and were down $168.1 million, or 35.6%, year-over-year.

Individual income tax refunds for the month totaled $51.7 million. The amount is $4.7 million above forecast and $30.4 million below last year. Tax filing deadline differences account for much of the change from a year ago, the department reported. 

Revenue from sales and use taxes was 0.5% below forecast in May. Collections totaled $261.9 million, down $1.23 million, or 4.5%, from the same month in 2021.

The department said a surge in stimulus-fueled retail spending last year accounted for part of the difference. Motor vehicle sales tax collection was down 10.8% from May 2021.

Corporate income tax payments exceeded forecasts for the month. Collections totaled $45 million, $1.2 million higher than expected and up $4.3 million from a year ago. 

Among smaller revenue sources, tobacco was above forecast by $1.1 million and below collections a year ago. Gaming was $200,000 below forecast and up $6.8 million, or 19.8%, from May 2021.

Fiscal year-to-date net available general revenue was $6.7 billion, 9.7% above the same time last year. The revenue forecast was revised May 18 to reflect an expected year-end surplus of $1.47 billion. 

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