Bolstered by higher than expected individual income and sales tax collections, Arkansas' general revenues in January increased by $25 million, or 3.2% over January of 2022, to $807 million.
It also beat the state's Nov. 10 forecast by $70.5 million, or 9.6%.
The state's chief economic forecaster, John Shelnutt, said the state's January revenue report reflects continued economic strength in Arkansas with a low unemployment rate and low unemployment benefit claims.
The state's sales tax collections increased by $25.4 million, or 9.4% in January over a year ago, to $294 million. It beat the state's forecast by $15.9 million, or 5.7%.
The state's individual income tax collections in January decreased by $4.1 million, or 0.9% from a year ago, to $441.7 million. But it exceeded the state's forecast by $51.7 million, or 13.3%.
In January, the state's net general revenues increased by $13.7 million, or 1.9% over a year ago, to $729.1 million. And it outdistanced the state's forecast by $69.6 million, or 10.5%.
January is the seventh month of fiscal 2023, which started July 1.
During the first seven months of fiscal 2023, the state's net tax revenues increased by $206 million, or 5% over the same period in fiscal 2023, to $4.3 billion. It beat the state's forecast by $194.8 million, or 4.7%.
The state's Nov. 10 forecast projects a general revenue surplus of $598 million.
Shelnutt said he doubted the state would collect a $1 billion general revenue surplus in fiscal 2023.