DALLAS - With September revenues running 3% above forecast in September, Arkansas stayed ahead of first quarter projections by nearly $50 million or 3.9%, according to John Shelnutt, director of the state's office of economic research and tax analysis.
The $516 million recorded for September registered as a 0.9% decline from the same month in 2014, but outpaced projections for the month by $15 million.
Because of tax cuts and appropriations enacted by the 2015 legislature, Arkansas expected revenues to fall from the 2014 levels, officials said.
Arkansas' fiscal year began July 1.
In the first quarter of the fiscal year, revenue collections totaled $1.52 billion, representing an increase of $8.7 million or 0.6% above last year, Shelnutt reported. Compared to the forecast for the fiscal year, revenues are ahead by $40.7 million or 2.7%.
Individual income tax collections for the quarter totaled $681.4 million, which was $32.3 million or 4.5% below FY 2015 collections and $8.1 million or 1.2% above forecast.
On a year-to-date basis, sales and use taxes totaled $596.1 million, an increase of $38.8 million or 7% from fiscal year 2015 and $27.7 million or 4.9% above forecast.
September sales tax growth was 8% above year ago collections and $11.1 million over forecast, Shelnutt reported. Corporate Income tax collections also added $5.4 million to the amount above forecast in September. Individual income tax collections were down 8.9% below year ago collections, partly due to payroll timing effects in the withholding tax category, Shelnutt said.