State Tax Revenue Down 5.6% in November, Still Above Forecast

State Tax Revenue Down 5.6% in November, Still Above Forecast
The Arkansas Capitol building in Little Rock. (Stephanie Dunn)

The Arkansas Department of Finance and Administration on Friday reported November net available general revenue of $472.1 million, down $27.8 million, or 5.6%, from a year ago.

The figure was above forecast by $12.3 million, or 2.7%. The forecast was revised on Nov. 10 to account for tax cuts from the special legislative session and updated economic assumptions. 

Gross general revenue for the month totaled $581.2 million, a decrease of $6.1 million, or 1%, from last year. The amount was 2.9% higher than forecast.

The department reported that all major collection categories were above forecast in November, with sales tax collections remaining particularly strong.

"State general revenue does not tax groceries, so the growth is coming from other consumption," Secretary of Finance Larry Walther said. "Growth is balanced among the largest revenue categories when adjusted for one-time factors and income tax cuts."

Sales tax collections rose 7% to $268.9 million, topping the monthly forecast by $11.6 million, or 8.8%. Most major reporting sectors displayed high growth compared to a year ago, reflecting ongoing economic expansion in many sectors. Motor vehicle sales tax collections were down 2.6%.

Individual income tax collections came in at $245.5 million in November, falling $25.3 million, or 9.4%, from a year ago. Collections in the category were 1.1% above forecast. The department said that individual withholding tax revenue decreased $13.4% percent from a year ago due to negative payday calendar timing.

Corporate income tax collections added up to $10 million in November, an increase of $2 million. The figure was $3.2 million above forecast.

Among smaller revenue sources, tobacco tax collections totaled $16.2 million, lower than a year ago and about $500,000 below forecast. Gaming tax revenue came in at $3.7 million, slightly higher than in November 2021.

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