Arkansas tax revenue up sharply in April, but ... | Arkansas Blog

Thursday, May 2, 2013

Arkansas tax revenue up sharply in April, but ...

Posted By on Thu, May 2, 2013 at 10:00 AM

The monthly report on Arkansas tax collections in April was in keeping with the announcement yesterday that the annual forecast was being revised upward because of improving economic conditions.

But the whopping increase in net revenue is a little misleading. They were up by 15 percent over the same month a year ago and up 14.2 percent over the forecast. But, said the Department of Finance and Administration:

Results were mainly driven by high growth in individual income tax. Much of the increase in recent collections represents income shifted to Tax Year (TY) 2012 and paid in FY 2013 revenue. Larger than anticipated payments with filing extensions and returns received in April for Tax Year 2012 resulted from taxpayer strategy and improved
business earnings. Other states and the IRS are reporting similar results this month.

The categories affected by this pattern in April were returns and extensions with payments. The gain included multiple types of activity, including tax shift strategy, expedited returns processing compared to year ago, and one-time business transactions. Expedited returns processing potentially pulled activity from May collections into April. In other income tax categories, collections growth in withholding was modest and estimated payments were down.

And here's more downside, a bellwether of econmomic activity, the sales and use tax:

Sales and Use tax collections were below forecast by $12.0 million or -6.5 percent and also below year ago levels. A variety of factors relate to ongoing weakness in sales and use tax receipts, including slow job and income growth, low inflation, and the diversion effect on taxable sales from elevated motor fuel costs to consumers in recent months.

I do wonder how much the migration to on-line sales, much of it with retailers who don't currently collect Arkansas sales taxes, affects this segment of the revenue picture, as opposed to economic conditions.

Here's the full report.

Tags: ,

From the ArkTimes store

Favorite

Comments

Subscribe to this thread:

Add a comment

More by Max Brantley

  • Here's a Republican senator speaking out on Trump

    Sens. Tom Cotton and John Boozman finally warmed to saying Nazism is bad, but on the more relevant question of Donald Trump, they and most Arkansas Republican officeholders have been conspicuously silent. By contrast, see U.S. Sen. Bob Corker of Tennessee.
    • Aug 17, 2017
  • Farewell to Frank Broyles set Saturday at UA

    What's being called a celebration of the life of Frank Broyles, the former Razorback coach and athletic director, is set for 2 p.m. Saturday at the Walton Arena on campus. He died Monday at 92.
    • Aug 17, 2017
  • What's in a name? In Arkansas, the 'h' in highways is silent

    The state's highway department accidentally spoke some elementary truth today in its Twitter account.
    • Aug 17, 2017
  • More »

Readers also liked…

  • Al Gore remembers Dale Bumpers

    Former Vice President Al Gore, a former U.S. Senate colleague of Dale Bumpers, sent a statement on Bumpers' death Friday:
    • Jan 3, 2016
  • Satanic Temple: Make Rapert pay for Ten Commandments monument

    A petition drive has begun to encourage a demand that Sen. Jason Rapert pay for the legal fees in defending his Ten Commandments monument proposed for the state Capitol grounds. It's more work by the Satanic Temple, which has fought church-state entanglement around the country.
    • Aug 28, 2016
  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016

Most Shared

  • Take yourself there: Mavis Staples coming to LR for Central High performance

    Gospel and R&B singer and civil rights activist Mavis Staples, who has been inspiring fans with gospel-inflected freedom songs like "I'll Take You There" and "March Up Freedom's Highway" and the poignant "Oh What a Feeling" will come to Little Rock for the commemoration of the 60th anniversary of the desegregation of Central High.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation