Arkansas tax revenue up 2.6% in July, 3% above forecast – Talk Business & Politics

Arkansas started its fiscal 12 months in July with gross sales tax income of $615.9 million, up 2.6% in contrast with July 2021, and three% above the forecast. After ending the earlier fiscal 12 months in June with a $1.62 billion surplus, the excess after July stands at $26.6 million.

The Arkansas Division of Finance and Administration reported Tuesday (Aug. 2) the tax income which confirmed positive aspects above forecast in the important thing classes. Particular person earnings tax income was $253.1 million in July, up 4.7% in contrast with July 2021 and up 4.7% above forecast.

Gross sales and use tax income was $272.4 million, up 4.7% above July 2021 and likewise 4.7% above the forecast. Company tax income was $35.1 million, down $4.8 million in contrast with July 2021 and $2 million above the forecast.

“Gross sales Tax progress remained excessive throughout consumer- and business-related sectors whereas automobile gross sales tax collections moved decrease. … Collections from motorized vehicle gross sales tax had been down 8.3 p.c in July from 12 months in the past ranges,” John Shelnutt, DFA administrator of financial and tax analysis, famous in Tuesday’s report.

DFA Secretary Larry Walther mentioned the July numbers present no indicators of an financial slowdown.

“July income outcomes are above forecast with no indicators of recession in state income collections from both customers or companies. We’ll look ahead to any proof of pullback as Fiscal 12 months 2023 continues,” he mentioned in an announcement.

Whole tax income in fiscal 12 months 2022 (July 2021-June 2022) was $8.773 billion, up 8% – or $651.2 million – in contrast with a sturdy fiscal 12 months 2021 during which the tax surplus was $945.7 million. Gov. Asa Hutchinson has referred to as a particular legislative session for Aug. 9 to expedite beforehand authorized earnings tax cuts.

OTHER REVENUE SOURCES
Tobacco
July 2022: $18.5 million
July 2021: $18.9 million

Alcoholic drinks
July 2022: $7 million
July 2021: $7.1 million

Video games of talent
July 2022: $4.8 million
July 2021: $3.7 million

Insurance coverage
July 2022: $1 million
July 2021: $400,000