State revenue forecaster shocked by surge in state tax revenue in April

Fueled by larger-than-expected gains in personal and corporate income tax collection, Arkansas state’s general revenue in April rose $378.7 million or 40% from compared to a year ago to reach $1.3 billion and exceeded the state forecast by $576 million or 76.7%.

This year’s income tax filing deadline was April 18 and last year’s income tax filing deadline was May 17, a government spokesperson said on Tuesday. Ministry of Finance and State Administration.

John Shelnutt, the state’s top economic forecaster, said he was shocked by the state’s general tax revenue last month, but it has been volatile during the covid-19 pandemic. He said he expects other states to report similar increases in tax revenue and large surpluses.

Personal income tax collections in April rose $339.8 million from a year ago to $810.8 million and beat the state’s forecast of 404.6 million, while sales and use tax revenue for the month fell $17.3 million from a year ago to $271.5 million, but topped state forecasts. projected $29.7 million, the finance department said in its monthly revenue report on Tuesday.

The state’s April corporate income tax collections rose $58.2 million from a year ago to $210 million and beat the state’s forecast of 136.8 millions of dollars.

In April, the state’s net general revenue rose $345.7 million from a year ago to $1.1 billion and beat the state’s forecast of $531.9 million. of dollars.

April is the 10th month of fiscal year 2022.

In the first 10 months of fiscal 2022, the state’s net general revenue increased $736.1 million from the same period in fiscal 2021 and exceeded the state’s forecast. $987.9 million.

State officials have already factored a general revenue surplus of $264 million into their projections for fiscal year 2022, so the state has accumulated a temporary surplus of $1.25 billion so far. in fiscal year 2022, Shelnutt said.

He said it looks like the state’s general revenue surplus could exceed $1.25 billion by June 30, but he doubts that surplus will exceed $1.5 billion.

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