Arkansas took in more tax revenue than expected last month. October general revenues came in over 8 percent (or $30 million) higher than last year, and 4.7 percent (or $18.2 million) above forecast. Two categories accounted for most of the higher than expected revenue last month: sales tax collections ($7.7 million above forecast), and corporate income tax collections ($2.3 million above forecast), according to this month’s report from the Department of Finance and Administration. Net general revenue represents the bottom line of funds available for distribution to state agencies and comes from taking certain off-the-top deductions from gross general revenue (like a portion of education adequacy funding and tax refunds).
Total net revenues collected are also above expectations for the year as a whole, but by a smaller percentage. So far this fiscal year, net general revenue collections are two percent (or $13.3 million) more than this time last year and above the forecast by .6 percent (or $11.1 million). Individual income tax collections so far are above last year ($26 million or 2.8 percent) and very close to predictions (only .2 percent or $1.7 million above forecast). Individual income tax refunds are 5.5 percent or $2.2 million below expectations, which means the state paid out less than anticipated and ended up with more net available revenue. Even though corporate income taxes came in above forecast in October, they are below expectations for the year so far. Corporate income taxes this fiscal year are under forecast by 5.1 percent (or $7.1 million), but corporate refunds help balance this by being down $7.5 million compared to last year.