Fueled by better-than-expected individual income and sales and use tax collections, state general revenue in July increased by $245.9 million over the same month a year ago to $766.8 million and exceeded the state’s forecast by $79.9 million.
Individual income tax collections increased by $207.5 million over the same month ago to $439.9 million and exceeded the state’s forecast by $17.6 million, while sales and use tax collections increased by $30.7 million over a year ago to $236.4 million and exceeded the state’s forecast by $32.5 million, the state Department of Finance and Administration said Tuesday in its monthly revenue report.
Last spring, the state shifted its individual income tax filing and payment deadline from April 15 until July 15 to coincide with the federal government’s change in its deadline.
But state officials said they are still surprised by July’s robust tax collections.
The state’s net general revenues available to state agencies for the month increased by $203.1 million over the same month a year ago to $665.9 million and exceeded the state’s forecast by $52.7 million.
Gov. Asa Hutchinson said "We expected July to be a down month as a result of early tax collections in May and June.
"To end July with a $52 million surplus is really good news and reflects the underlying growth potential of the Arkansas economy. These continue to be uncertain economic times and the revenues are difficult to forecast because of the national downturn. It is really encouraging to see our revenue picture so strong with the income tax cuts that were adopted last year,” the Republican governor said in a written statement.
This story was originally published at 9:54 a.m.