Hutchinson: Arkansas Revenue Beats Forecast for 31st Month
LITTLE ROCK – Net available revenue collection in September totaled $690.5 million, an increase of $98.5 million over September 2020 and $162.7 million above the state forecast, according to the September revenue report the Department of Finance and Administration released Monday. The increase is the result of better-than-expected growth in the labor market and an increase in sales-tax collection “from robust consumer activity.”
“We have exceeded revenue forecasts for 31 consecutive months now,” Governor Asa Hutchinson said today. “This affirms that our economy continues to improve as we emerge from the COVID-19 pandemic, and that our decision to keep the economy open for business was important for our families and protected worker’s income. The surplus trend line puts Arkansas in good position to have another gradual reduction in the income tax rates.”
Net revenue collections surpassed forecasts for the 31st month in a row, dating to March 2019.
The payroll withholding tax came in at $17.9 million above forecast, a 7.9 percent year-to-year increase. The transportation sector showed the biggest percentage increase at 134 percent year to year, followed by personal services at 22 percent and restaurants at 16 percent.