DALLAS – Arkansas revenues reported in December fell 3.9% below the same month in the previous year but exceeded projections by $7.7 million or 1.7%, according to John Shelnutt, director of economic analysis and tax research for the Arkansas Department of Finance and Administration.
For the current fiscal year that began July 1, DFA projected a decrease in net revenue from previous estimates because of tax cuts passed by the last two legislative sessions. Those cuts include about $100 million in middle class income tax cuts championed by Gov. Asa Hutchinson, who took office a year ago.
For the fiscal year-to-date, net available general revenues total $2.58 billion, which is $17.8 million or 0.7% below year-ago levels. Six months into the fiscal year, net available revenue is above forecast by
$66.9 million or 2.7%.
Year-to-date sales and use taxes total $1.16 billion, an increase of $50.8 million or 4.6% from FY 2015 and $28.8 million or 2.5 % above forecast.
December sales and use tax collections of $186.4 million, were $2 million or 1.1% below the same month in 2014. Collections were also below monthly forecast levels by $5.8 million or 3%. The results, which largely reflect taxable sales activity in November, are one sign of an economic slowdown.
December individual income tax collections of $230.6 million were $2.3 million, or 1% percent below the same month in 2014 but ran 5.2% or $11.3 million above forecast, Shelnutt said.
"Reduced collections from withholding tax accounted for the decline from year ago levels," Shelnutt said.
