State Tax Revenue Up 5.9% in December

State Tax Revenue Up 5.9% in December

The Arkansas Department of Finance and Administration on Wednesday reported December net available general revenue of $684.3 million, up $38.1 million, or 5.9%, from a year ago.

The figure was above forecast by $112.9 million, or 19.8%.

Gross general revenue for the month totaled $773.2 million, an increase of $53.6 million, or 7.4%, from last year. Gains were broad-based, with collections above forecast by $117.4 million, or 17.9%.

The department reported that all major collection categories were above forecast in December.

"Income tax payments reflecting tax year 2022 liabilities pushed corporate and individual income tax categories well above forecast," Larry Walther, secretary of finance, said in a statement. "2022 was a very good year in Arkansas. Sales tax collection growth remained elevated in December and over the first six months of fiscal year 2023."

Sales tax collections in December rose 5% to $289.6 million, topping the monthly forecast by $8.6 million, or 3.1%. 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 up 7.8%.

Individual income tax collections came in at $288.9 million in December, rising $14.6 million, or 5.3%, from a year ago. Collections in the category were 12.2% above forecast. The department said that individual withholding tax revenue decreased 5.8% from a year ago due to recent tax reductions taking effect.

Corporate income tax collections added up to $151.5 million in December, an increase of $14.6 million. The figure was $66.3 million above forecast, which the department attributed to payments toward tax liabilities by corporations following a calendar year schedule.

Among smaller revenue sources, tobacco tax collections totaled $16.6 million, lower than a year ago and about $700,000 below forecast. Gaming tax revenue came in at $3.5 million, slightly higher than in December 2021 and above forecast.