Arkansas tax revenue rose 8.3% in November compared to the same month a year ago and exceeded the state’s forecast for the month, the Department of Finance and Administration reported Tuesday.
Net available general revenue reached $512.6 million, up $39.2 million, or 8.3%, from last year and $10.9 million, or 2.2%, above forecast. The department said the increase was driven by higher-than-expected returns in individual and corporate income taxes, coupled with lower-than-anticipated refund claims.
Year-to-date, net available general revenue was $2.74 billion, down $25.3 million, or 0.9%, through the same period in 2023.
In November, gross general revenue totaled $617.9 million, an increase of $11.3 million, or 1.9%, from last year and $11.4 million, or 1.9%, above forecast. Corporate income tax and sales and use tax collections were key contributors.
Sales and use tax collections rose to $294.9 million, which was $7.8 million higher than last year and $5.4 million, 1.9%, above forecast.
Individual income tax collections totaled $245.1 million, down $2.5 million, or 1%, from last year but exceeded the forecast by $3.4 million, or 1.4%. Withholding tax revenue dropped $6.2 million, reflecting tax cut effects.
Individual income tax refunds amounted to $26.8 million, which was $36.1 million below last year and $1 million under forecast.
Corporate income tax collections were $17.3 million, an increase of $5.1 million from last year and $3.2 million above forecast. Refunds totaled $10.5 million, $4.9 million higher than last year but about $400,000 below forecast.
Among smaller revenue sources, tobacco tax collections reached $15.3 million, down $1.6 million from last year and about $400,000 below forecast. Gaming tax revenue totaled $4 million, about $100,000 higher than a year ago and in line with the state forecast.
This article was written with assistance from ChatGPT.
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