The Natural State brought in less money than what was expected last month, according to the latest Arkansas revenue report.
A drop on sales tax receipts gets the blame for the poor showing in July.
Here's the full report:
Results within major revenue lines were mixed as both individual and corporate income exceeded
forecast and year ago collections. Decline in sales tax (gross receipts) relative to year ago and
forecast accounts for the small percentage forecast shortfall this month.
July Gross General Revenues: July collections total $434.8 million, an increase of $9.0 million or
2.1 percent above last year and $3.7 million or -0.8 percent below forecast.
July Individual Income Tax collections total $193.6 million. Collections increased by $12.4 million,
or 6.8 percent, compared to last year. With respect to the forecast, collections are $2.7 million or
1.4 percent above forecast. Individual withholding expanded 7.7 percent compared to last year.
July Individual Income Tax Refunds total $7.3 million, $2.3 million or -24.4 percent below last year
and $2.6 million or -26.6 percent below forecast.
July Gross Receipts Collections: July collections total $181.2 million, a decrease of $7.0 million or
-3.7 percent from last year. Collections were below monthly forecast levels by $13.1 million or -6.7
July Corporate Income Tax collections total $25.2 million, an increase of $2.2 million or 9.4 percent
above year earlier levels, and $2.1 million or 9.0 percent above forecast.
July Corporate Income Tax Refunds total $2.0 million. This amount is $0.7 million or 53.1 percent
above year ago levels.
July Tobacco Tax collections, a small component of general revenue, total $23.4 million or 15.1
percent above year earlier levels, and $4.3 million or 22.7 percent above forecast. Monthly changes in tobacco tax collections can also be attributed to uneven patterns of stamp sales to wholesale purchasers.
total $4.6 million, a decrease of $0.1 million or -2.0 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% to 6.0%, 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 July 2011, $37.3 million was collected and deposited to the fund. After deductions, the net amount is $36.1 million. The monthly collection is equivalent to a -3.8 percent decrease from prior year