State general revenue exceeds forecast in August, surpasses last year by $17.8M

Arkansas Democrat-Gazette/File photo - The Arkansas State Capitol Building
Arkansas Democrat-Gazette/File photo - The Arkansas State Capitol Building

Bolstered by rising individual income tax and sales and use tax collections, state general revenue increased by $17.8 million in August over the same month a year ago, state officials reported Wednesday morning.

The state’s general revenue collections exceeded the state’s forecast for the month by $8.4 million, the state Department of Finance and Administration reported in its monthly revenue report.

The state’s individual income tax collections rose in August by $12.1 million over a year ago to $229 million, exceeding the state’s forecast by $2.8 million. Individual withholdings increased by 4.6 percent over a year ago, which usually reflects more employees working and more employees working longer hours.

Sales and use tax collections for the state last month increased by $11.6 million from the same month last year to $222.8 million. These collections exceeded the forecast for August by $6.3 million.

A state official said the increased sales tax collections reflect a rebound from recent months and a “slight uptick” in collections from a new law requiring out-of-state sellers without a physical presence in the state to begin collecting and remitting sales and use taxes to the state.

August is the second month of fiscal year 2020.

Total general revenue collections have reached $1.02 billion in the first two months of fiscal year 2020. That’s an increase of $6.9 million over the same period in fiscal year 2019 and $6.7 million above the state’s forecast.

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