Rep. Andy Mayberry, R-Hensley, explains his bill dealing with abortion during a meeting of the House Committee on Public Health, Welfare and Labor at the Arkansas state Capitol in Little Rock, Ark., Thursday, Jan. 31, 2013. The measure received the committee's approval. (AP Photo/Danny Johnston)
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Rep. Andy Mayberry, R-Hensley, explains his bill dealing with abortion during a meeting of the House Committee on Public Health, Welfare and Labor at the Arkansas state Capitol in Little Rock, Ark., Thursday, Jan. 31, 2013. The measure received the committee's approval. (AP Photo/Danny Johnston)
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Dr. Emidio Novembre, right, testifies during a meeting of the House Committee on Public Health, Welfare and Labor at the Arkansas state Capitol in Little Rock, Ark., as Rep. Andy Mayberry, R-Hensley, center, and Julie Mayberry, left, listen Thursday, Jan. 31, 2013. A bill dealing with abortion sponsored by Rep. Mayberry received the committee's approval. (AP Photo/Danny Johnston)
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Rep. Greg Leding, D-Fayetteville, asks a question during a meeting of the House Committee on Public Health, Welfare and Labor at the Arkansas state Capitol in Little Rock, Ark., Thursday, Jan. 31, 2013. A bill dealing with abortion received the committee's approval. (AP Photo/Danny Johnston)
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Egyptian protesters take cover as they clash with riot police, not seen, near Tahrir Square, Cairo, Egypt, Friday, Jan. 25, 2013. Two years after Egypt's revolution began, the country's schism was on display Friday as the mainly liberal and secular opposition held rallies saying the goals of the pro-democracy uprising have not been met and denouncing Islamist President Mohammed Morsi. With the anniversary, Egypt is definitively in the new phase of its upheaval. (AP Photo/Khalil Hamra)
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An Egyptian protester evacuates an injured boy during clashes near Tahrir Square, Cairo, Egypt, Friday, Jan. 25, 2013. Two years after Egypt's revolution began, the country's schism was on display Friday as the mainly liberal and secular opposition held rallies saying the goals of the pro-democracy uprising have not been met and denouncing Islamist President Mohammed Morsi. (AP Photo/Khalil Hamra)
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Thousands of Egyptian protesters gather in Tahrir Square, Cairo, Egypt, Friday, Jan. 25, 2013. Two years after Egypt's revolution began, the country's schism was on display Friday as the mainly liberal and secular opposition held rallies saying the goals of the pro-democracy uprising have not been met and denouncing Islamist President Mohammed Morsi. With the anniversary, Egypt is definitively in the new phase of its upheaval. (AP Photo/Khalil Hamra)
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Skirmishes break out between protesters and security forces, unseen, near Tahrir Square, Cairo, Egypt, Friday, Jan. 25, 2013. Egyptian opposition protesters are gathering in Cairo's Tahrir Square to mark the second anniversary of the uprising that toppled Hosni Mubarak's autocratic regime. (AP Photo/Khalil Hamra)
Arkansas revenues in January exceed forecast
LITTLE ROCK, Ark. (
AP) — Arkansas' tax revenues in January beat last year's numbers and exceeded this year's forecast, but the increases are artificial, officials said Monday.
The Department of Finance and Administration said the state's net available revenues totaled $516 million in January, which was 12 percent higher than last year's revenues and 13.5 percent above what officials had forecast.
Sales and use taxes were down 1 percent in January, which was 5 percent below expectations. Corporate income tax collections were up 6.7 percent from last year, exceeding the forecast by 2.5 percent.
The bulk of the overall increase in net revenue was driven by a 10 percent jump in individual income tax collections, as some taxpayers sought to shift their income into tax year 2012 to avoid rate increases this year, according to Richard Weiss, the director of the Department of Finance and Administration. In addition, he said, delays in federal tax filing dates resulted in fewer refund claims at the state level.
"With the combination of those two things, we have this kind of artificial bubble in this month's collections. It was higher on the income side and less payouts on the refund side," he said. "A lot of that will take care of itself over the course of the next several months."
Gov. Mike Beebe cautioned against using the figures to draw any conclusions about the longer-term budgetary outlook.
"It looks really, really good," he said. "However, there's an anomaly in it that will bring it back down, so you'll see the refunds come in at a greater number in the coming months. So you have to temper your optimism with that."
Beebe said that while increases in the income tax shows that people are working, he was troubled by decreases in sales and use tax collections, which underperformed the state's forecast by 5 percent.
The Department of Finance noted in a press release that the effects of the December 2012 storm and parts of the holiday shopping season were reflected in this month's data.
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