LITTLE ROCK, AR - The State of Arkansas has netted more than $800 million in general revenue so far this year from a total gross of more than $927 million.
The totals are both an increase over last year and expected amounts.
The full summaries are below for year-to-date and August revenues.
YEAR-TO-DATE REVENUE SUMMARY
Year-to-date Net Available General Revenues: Year-to-date net available general revenues total $801.4 million, $3.4 million or 0.4 percent above year ago levels. After two months into the fiscal year, net available revenue is above forecast by $2.5 million or 0.3 percent.
The forecast adjusted for a group of one-time audit collections in Sales and Use Tax in the year ago period that amounted to $13.5 million. Sales tax growth in the latest period was 3.9% above year ago collections after adjusting for this factor in the collection pattern.
Year-to-date Gross General Revenues: Year-to-date gross collections total $927.8 million, representing an increase of $17.2 million or 1.9 percent above last year. Gross general revenues are above forecast by $3.8 million or 0.4 percent.
Year-to-date Individual Income Taxes: Year-to-date individual income tax collections total $422.4 million, $26.6 million or 6.7 percent above FY 2014 collections and $9.0 million or 2.2 percent above forecast. Collections for individual withholding are up 7.3 percent from year ago levels.
Year-to-date individual income tax refunds total $18.4 million, up $4.1 million or 29.1 percent compared to last year and $4.2 million or 29.8 percent above forecast. Amounts above forecast in refund categories decrease net available revenue results.
Year-to-date Sales and Use Tax Collections: On a year-to-date basis, sales and use taxes total $373.7 million, a decrease of $6.8 million or -1.8 percent from FY 2014 and $5.2 million or -1.4 percent below forecast.
Year-to-date Corporate Income Taxes: Year-to-date corporate revenues total $26.2 million, a decrease of $6.6 million or -20.2 percent from year-to-date FY 2014. Corporate income is below forecast by $8.3 million or -24.1 percent.
Year-to-date corporate income tax refunds total $3.0 million, an increase of $1.3 million compared to the same year-to-date period last year.
AUGUST REVENUE SUMMARY
August Net Available General Revenues total $398.3 million, $10.5 million or 2.7 percent above last year and $12.3 million or 3.2 percent above forecast.
August results were ahead of forecast in all major categories of collections. A decline in sales tax collections compared to last year was anticipated, to adjust for one-time audit receipts in August 2014. Sales tax growth adjusted for this event was 3.9 percent year over year. Individual Income tax collections were up 10.2 percent, aided by payroll timing effects in the Withholding category. Corporate Income tax collections were 22.2 percent above forecast in an otherwise minor collection month.
Among smaller revenue sources, tobacco was below year ago levels and below forecast. Gaming results exceeded forecast and continued to display double-digit growth over year ago revenue.
August Gross General Revenues: August collections total $457.0 million, an increase of $14.0 million or 3.2 percent above last year and $13.1 million or 2.9 percent above forecast.
August Individual Income Tax collections total $209.1 million. Collections increased by $19.3 million, or 10.2 percent compared to last year. With respect to the forecast, collections were $8.7 million or 4.4 percent above forecast. Individual withholding increased 10.8 percent compared to last year.
August Individual Income Tax Refunds total $8.1 million, $1.4 million or 21.9 percent above last year and $1.8 million or 27.9 percent above forecast. Refund amounts above forecast detract from net available fund results.
August Sales and Use Tax Collections: August collections total $188.2 million, a decrease of $6.3 million or -3.3 percent from last year. Collections were above monthly forecast levels by $2.4 million or 1.3 percent. The forecast reflects one-time collection gains in the prior year.
August Corporate Income Tax collections total $7.8 million, an increase of $1.9 million from year ago, and $1.4 million or 22.2 percent above forecast.
August Corporate Income Tax Refunds total $1.8 million. This amount is $0.8 million above year ago levels. Refunds were $0.7 million above forecast.
August Tobacco Tax collections, a smaller component of general revenue in annual terms, total $17.5 million. Collections decreased by $1.7 million or -8.6 percent from year earlier levels and were also below forecast by -$0.7 million. Monthly changes in tobacco tax collections can be attributed to uneven patterns of stamp sales to wholesale purchasers.
SPECIAL REVENUES OF NOTE
Year-to-date Soft Drink Tax (for Medicaid Program Trust Fund): Year-to-date collections of the dedicated soft drink tax total $7.5 million, a decrease of -7.4 percent from last year.
Educational Adequacy Fund: Act 107 of the Second Extraordinary Session of 2003 increased the state sales and use tax rate from 5.125 percent to 6.0 percent, effective March 1, 2004. Effective July 1, 2004 a new sales tax on selected services went into effect in addition to an increase in vending machine decal fees. Act 94 increased the minimum corporate franchise tax and the tax rate, effective for calendar years beginning January 1, 2004.
The additional revenues are deposited as special revenues to the Educational Adequacy Fund to be used to fulfill the financial obligations of the state to provide an adequate educational system. In August 2014, $38.9 million was collected and deposited to the fund. After deductions, the net amount is $37.7 million. The monthly collection is equivalent to a -4.2 percent decrease from prior year collections.
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