State Tax Revenue Rises 5% in July

State Tax Revenue Rises 5% in July
The Arkansas State Capitol (Shutterstock)

The Arkansas Department of Finance and Administration on Tuesday reported July net available general revenue of $542 million, up $27.1 million, or 5.3%, from a year ago.

The figure for the first month of fiscal 2023 was $26.6 million, or 5.2%, above forecast.

Gross general revenue rose by $15.5 million, or 2.6%, from last year to $615.9 million. The amount was $18.2 million higher than forecast.

All major collection categories were above forecast, with sales tax growth remaining high across consumer and business-related sectors. 

Sales and use tax collections came in at $272.4 million, an increase of $12.3 million, or 4.7%, from the same month in 2021. Collections were above forecast by $12.1 million, or 4.7%. The department reported that motor vehicle sales tax collections fell 8.3%.

Individual income tax collections totaled $253.1 million in July. That's an increase of $11.4 million, or $4.7%, from a year ago. Collections were 0.6% above forecast. Payroll withholding tax collections rose by 4.8%.

Corporate income tax collections added up to $35.1 million in the month, falling by $4.8 million. The figure was $2 million above forecast.

The department reported that income tax refunds were noticeably lower than a year ago, which added to net available fund results. The total in July was $11 million, a decrease of $9.9 million and below forecast by $8.2 million.

Among smaller revenue sources, tobacco tax collections totaled $18.5 million, a decline of about $400,000, or 2%, from July 2021. The figure beat the forecast amount by $1.3 million. Gaming was up $1.1 million, or 28.8%, from a year ago and about $100,000 above forecast for the month.