The Arkansas Department of Finance and Administration on Wednesday reported May net available general revenue of $459.4 million, up $66.4 million, or 16.9%%, from the same month a year ago.
The figure was above forecast by $4.1 million, or 0.9%.
The department on May 15 also revised the state’s projected year-end surplus to $708.1 million, up from the $240.5 million surplus projected in February. With May revenue exceeding forecasts, the year-end surplus would be just over $712 million.
The fiscal year ends June 30.
In a statement to Arkansas Business, department spokesman Scott Hardin said the previous projection incorporated lower collections due to tax cuts passed in September’s special session. The projection was revised as collections outperformed expectations through the spring.
“The state’s economy simply outperformed the forecast,” Hardin said. “This was made clear each month when we released collection totals. DFA is required to submit a revenue forecast twice a year. It is at those points when the forecast is adjusted if needed. In both cases (the February and May revisions), the adjustments were needed, first to lower projections due to tax cuts and second to increase it due to a strong economy.”
Hardin said the department relies on a wide variety of economic data in revenue forecasting.
Gross general revenue for May totaled $596.5 million, an increase of $10.7 million, or 1.8%, from last year primarily due to corporate income tax collections. Those collections totaled $25.9 million, up $17.8 million from a year ago and above forecast by $8 million.
Sales tax collections came in at $285.7 million, down $6 million, or 2.1%, from May 2023. That was below the forecast amount by $8.8 million, or 3%. The department reported mixed results for major reporting sectors in the category.
Individual income tax collections totaled $247.9 million in May, down $2.5 million, or 1%. Collections were above forecast by $5.8 million, or 2.4 %. The department said that individual withholding tax fell by $1.4 million from a year ago.
Individual income tax refunds totaled $41.5 million, down $69.6 million from last year and about $900,00 above forecast. Corporate income tax refunds came to $25.9 million, up $17.8 million from a year ago and $8 million above forecast.
Among smaller revenue sources, tobacco tax collections totaled $16.6 million, lower than a year ago by $1.3 million and above forecast by about $400,000.
Gaming tax revenue came in at $5.5 million, higher than May 2023 and below forecast by about $300,000.
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