Arkansas' state general revenue collections in May dropped by $177.4 million compared to the same month a year ago to $645.4 million, but exceeded the state's latest forecast by $6.6 million.
The state's individual income tax collections and sales and use tax collections both declined last month compared to a year ago, the state Department of Finance and Administration said Thursday in its monthly revenue report. May's individual income tax collections exceeded the state's latest forecast, but May's sales and use tax collections trailed the latest forecast.
This year's state's individual income tax filing deadline was in April, but last year that deadline was in May.
Tax refunds and some special government expenditures are taken off the top of total general revenue collections, leaving a net amount that state agencies are allowed to spend up to their maximum distribution under the state's Revenue Stabilization Act.
The state's net general revenues in May declined by $142.4 million from the same month a year ago to $512.7 million, but exceeded the state's May 18 forecast by $4.6 million.
On May 18, the finance department increased its general revenue forecast for the current fiscal year that ends June 30 to a surplus of $1.47 billion and projected a $914 million surplus in the fiscal year that begins July 1 and ends June 30, 2023.
Gov. Asa Hutchinson has said inflation, including the high cost of fuel, has hurt Arkansans and some form of tax relief is necessary to return a portion of the surplus to taxpayers.
Sen. Jonathan Dismang, R-Searcy, has floated the idea of accelerating the implementation of the state's individual income tax cuts enacted in the December special session.
Two weeks ago, Hutchinson stopped short of expressing his opinion on that idea.
Rep. Joe Jett, R-Success, and Dismang also have signaled that they would like the state to adopt the federal depreciation schedules for small businesses and farmers in a special session.
Hutchinson is holding a news conference Thursday afternoon in the governor's conference room.