Arkansas’ fiscal year certainly ended on a positive note with a $191.6 million surplus thanks to total collections of $6.47 billion, up 3.7% compared to the previous fiscal year and above the budget forecast by 1.1%.
The report, issued Thursday (July 2) by the Arkansas Department of Finance and Administration, showed that total collections were $228.1 million more than the previous fiscal year. The fiscal year is the fifth consecutive year for revenue increases. The previous fiscal year surplus (July 2013 - June 2014) was $78.7 million.
“The fiscal year ended above forecast and above the budgeted amount as a result of improving growth in gross revenue (collections) and lower-than-expected payouts from Income tax refunds and other deductions. One-time deposits also influenced year ago comparisons,” noted the report.
The one-time revenue totaled $65.5 million. The surplus would have been $126.1 million without such revenue.
Individual income tax collections for the fiscal year totaled $3.188 billion, up 2.5% from last year and 2.2% above the budget forecast. Fiscal year sales and use tax collections were $2.197 billion, up 1.1% compared to last year and 0.7% below the budget forecast. Income taxes and the sales and use tax collections are the two primary sources of state revenue.
Corporate income tax revenue for the fiscal year is $493.1 million, up 12% compared to the same period in the previous fiscal year, and up 3.4% over the budget forecast.
The fiscal year also ended on a good note. Total collections in the June report were $670.3 million, up 8.7% compared compared to June 2014, and 9.4% above the forecast.
OTHER TAX COLLECTIONS
Alcoholic beverage
July 2014 - June 2015: $55.1 million
July 2013 - June 2014: $53.2 million
Games of skill
July 2014 - June 2015: $47.3 million
July 2013 - June 2014: $39.5 million
Tobacco
July 2014 - June 2015: $218.5 million
July 2013 - June 2014: $219.2 million
Insurance
July 2014 - June 2015: $169.3 million (reflects one-time deposit of $51.1 million)
July 2013 - June 2014: $118.4 million
COLLECTIONS HISTORY
Tax collections during fiscal year 2014 (July 2013-June 2014) totaled $6.242 billion, up 0.5% above the previous fiscal year and up just 0.2% compared to budget estimates. The year marked the fourth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $78.7 million.
Tax collections during fiscal year 2013 (January 2012-January 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.
Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the January 2010-January 2011 period. State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.
The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.