State Revenue Collections Take Hit

many gold coins lying in piles on a white background

As the legislature quickly moved forward with Governor Asa Hutchinson’s $97 million tax cut proposal Monday at the State Capitol, general revenue collections for January came in well below year ago levels and the state’s own forecast due to the 2017 corporate tax reform package approved by Congress.

For the month of January, net available revenues were $554.1 million, down 5% or $29.2 million from a year ago and $13 million or 2.3% below forecast, according to the monthly revenue summary from the state Department of Finance and Administration (DF&A). January gross collections, a broader economic indicator that includes collections from all available categories, also fell by 4%, or $25.6 million, to $622.6 million from a year ago.

According to DF&A economist John Shelnutt, actual tax collections in January were -30.4% below a year ago in individual estimate tax payments versus the expected 15% decline in the forecast. That resulted in estimated tax payments coming in $17.6 million below forecast for the month, he said.      MORE

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