Revenues for August 2020 were up more than nine percent above the state’s forecast.
The Arkansas Department of Finance and Administration reported that the state pulled in $485.5 million in revenue for August 2020. This total was $41 million – or 9.2 percent – above the forecast. In addition, the month’s revenue was $36.5 million above August 2019’s revenue total.
Gross general revenues totaled $564.9 million in August, which also exceeded both the forecast and last year’s revenue. The August gross general revenue was $53.9 million, or 10.6 percent above the forecast and $56.9 million, or 11.2 percent, above last year’s gross revenue in August.
Both the individual income tax refunds and sales and use tax collections exceeded forecast levels for August. The individual income tax refunds were $26.4 million, while the sales and usage tax collections totaled $236.2 million. The income tax refunds were $11.2 million above the forecast and $16.1 million above last year’s total. The sales and use tax collection total was $20.7 million above forecast and $13.5 million above August 2019’s total.
Corporate income tax collections fell during August 2020. These collections decreased to $3.7 million, or $2.3 million below the forecast. This was a decrease of $0.4 million from the same time last year. Corporate income tax refunds, however, increased during August, totaling $1.3 million, a $0.3 million increase over the forecast and $0.5 million above last year.
Tobacco tax collections decreased in August, which the ADFA report attributed to “uneven patterns of stamp sales to wholesale purchasers.” The tobacco tax collections in August numbered $19.5 million. This total was a decline of 1.4 percent from last year but was $1.1 million above the department’s forecast.
The state also collected $48.6 million to be deposited in the Educational Adequacy Fund. The fund netted $47.2 million after deductions.
During his daily press conference, Gov. Asa Hutchinson called the August report encouraging, saying that it indicated to him that consumer confidence is increasing in Arkansas.
“People are having confidence in going back to work. People are having confidence in doing consumer purchasing. Even though we though July and August might be some tough months, this are very encouraging numbers for us,” he said.