State Tax Revenue Up 1.9% in January

State Tax Revenue Up 1.9% in January

The Arkansas Department of Finance and Administration on Thursday reported January net available general revenue of $729.1 million, up $13.7 million, or 1.9%, from a year ago.

The figure was above forecast by $69.6 million, or 10.5%.

Gross general revenue for the month totaled $807 million, an increase of $25 million, or 3.2%, from last year. Gains were broad-based, with collections above forecast by $70.5 million, or 9.6%.

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

Sales tax collections in the month rose 9.4% to $294 million, topping the monthly forecast by $15.9 million, or 5.7%. Most major reporting sectors showed high growth year-over-year, reflecting continued economic expansion in many sectors. The retail sector had lower growth after a 25% gain in January 2022. Motor vehicle sales tax collections rose 10.2% from January 2022.

Individual income tax collections came in at $441.7 million in January, down $4.1 million, or 0.9%, from a year ago. Still, collections in the category were 13.3% above forecast. The department said that individual withholding tax revenue decreased by 13.3% from a year ago due to income tax cuts taking effect.

Corporate income tax collections added up to $36.7 million in January, an increase of $7.6 million. The figure was $4.8 million above forecast, which the department attributed to higher extension payments.

Among smaller revenue sources, tobacco tax collections totaled $16.6 million, higher than a year ago and about $2.5 million above forecast.

Gaming tax revenue came in at $4.2 million, higher than in January 2022 and above forecast by about $500,000.

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