story from Talk Business, a TCW content partner
Arkansas revenue officials said April tax collections were in line with expectations leading to year-to-date figures slightly rising 10 months into the current fiscal year.
The April revenue report provided by the Arkansas Department of Finance and Administration showed net available general revenues totaling $570.2 million, down 11.3% from a year ago. Timing issues that inflated individual income tax collections a year ago declined in 2014 causing the big drop-off.
“Results in April, the largest collection month of the year, reflect adequate forecast provision for the anticipated decline from Individual Income tax collections in the prior year,” said John Shelnutt, head of DFA’s Economic Analysis and Tax Research Division. “Income tax shift from taxpayer strategy in the prior year added to FY 2013 results as a one-time boost and presented a challenge to current fiscal year prediction. The outcome of this one-time shift is reflected in the latest April results as a $101.7 million decline in Individual Income tax revenue compared to year ago results. The 17.9 percent decline was mostly anticipated and further offset by lower-than-expected Individual Income tax refunds.”
Corporate Income tax collections were $20.7 million above forecast for the month. Sales and Use tax collections were above forecast by $2.3 million or 1.3% and also above year ago levels by 4.9%.
“Short-term factors in collections processing may have contributed some of the gain above forecast for the month,” Shelnutt said.
Year-to-date Net Available General Revenues cleared $4.16 billion, 0.5% above last year’s levels and $77.6 million or 1.9% above forecast.
Other YTD totals included:
• Individual income taxes – 1.4% below last year; 0.5% above forecast;
• Corporate income taxes – 9% above last year; 10.2% above forecast; and
• Sales and use taxes – 3.2% above last year; 0.8% below forecast.