DALLAS Increased revenue from sales tax audits helped Arkansas overcome a weakness in the state income tax in August, state finance officials said Sept. 4.
Net available general revenues totaled $387.8 million last month, up $6 million from the official outlook and almost $20 million more than in August 2012.
Revenues in the first two months of fiscal 2014 total $798 million, the Department of Finance & Administration said. Collections so far are $25 million more than the same period of fiscal 2013 and $13.3 million more than predicted in the official budget outlook
“August results were boosted by one-time sales tax audit payments and better-than-expected corporate income tax collections,” said John Shelnutt, director of economic analysis for the department.
The state sales tax brought in $194.5 million in August, an increase of $16.5 million from last year and $7.5 million more than predicted.
Corporate income tax collections totaled $6 million, an increase of $2.2 million from last year and $2.1 million above the forecast.
Individual income tax collections are disappointing, Shelnutt said.
The individual income tax generated $190 million in August, up only $100,000 from August 2012 and $7 million less than expected.
“Additional reporting periods should determine whether this weakness is part of a trend or a temporary payroll timing issue,” he said.
In the first two months of fiscal 2014, the state’s personal income tax has brought in $396 million, down $6 million from the same period of fiscal 2013. Collections are $8.6 million below expectations.
Sales tax revenues are up 7% over the same period, to $380.5 million so far.
