The Arkansas Department of Finance & Administration on Tuesday reported September net available general revenue of $766.1 million, 11% above the same month last year and 20% above forecast.
In its monthly report, the department said September results were above forecast in all major revenue categories, with individual and corporate income tax collection accounting for more than $103 million of the gain, largely in estimated tax payments.
For the fiscal year so far, net available general revenue stood at $1.85 billion, 7% above the same time last year and 10% above forecast.
“Corporate and Individual Income tax filings in September indicate we are on track for a third consecutive year of high growth in incomes,” said Larry Walther, secretary of the state DF&A. “There appears to be no pullback in tax payments for Tax Year 2022 liabilities. This helps explain continued double-digit gains in Sale Tax collections.”
In September, individual income tax collections totaled $361.4 million, up nearly 9% from the same month last year and 12% above forecast. Individual withholding tax revenue was up 4% over last year amid tax rate reductions, the report said.
More: Download the full report.
Meanwhile, corporate income tax totaled $164.8 million, up nearly 18% from the same month last year and 64% above forecast.
September sales and use tax collections totaled $288.6 million, up more than 11% from the same time last year and forecast.
“Most major reporting sectors of Sales Tax displayed high growth over the prior year,” the report said, “reflecting continuing economic expansion in many sectors.”
Michael Pakko, chief economist and state economic forecaster at the Institute for Economic Advancement at the University of Arkansas at Little Rock, said the report shows the strength of consumer spending “just keeps going.”
“We are seeing some slowdown in real (inflation-adjusted) spending, but the year-over-year increases in sales tax collections still exceeds the rate of inflation over the past year,” said Pakko, who writes the Arkansas Economist blog. “The continued growth of income tax receipts suggests that the sales growth is being supported by healthy income gains, which is postponing or obviating any need for a meaningful cutback in spending by consumers.”
Arkansas’ previous fiscal year ended with a nearly $946 million surplus and net available general revenue of $6.8 billion. That revenue was up 19% year-over-year and 20.4% above forecast.