Stockpiling by tobacco retailers in anticipation of an increase in Arkansas state taxes is credited with a better-than-expected revenue picture in February.
The Department of Finance and Administration said last week that net available revenue in February totaled $207.3 million. That is $16.4 million more than in February 2008 and $41.5 million more than expected.
Department director Richard Weiss said tobacco taxes totaled $14.5 million in February, up from $9 million in February 2008. He said retailers stocked up to avoid higher taxes after the General Assembly raised taxes on tobacco products by $87.8 million a year to expand health care programs. The higher taxes went into effect March 1.
Gross general revenues totaled $396 million, $20.7 million more than last year and $30.2 million more than forecast.
Income and sales tax receipts also exceeded earlier predictions.
Individual income tax collections totaled $200.7 million, a $12.4 million increase from February 2008 and $21.4 million above the state’s forecast.
Sales and use tax collections totaled $170.3 million, up $5.1 million from last year and $5 million above the forecast.
Revenues in the first eight months of fiscal 2009 of $3.6 billion are up $100 million from the same period in fiscal 2008.
