Arkansas revenues in March of this year dropped below last year’s figures. However, individual income tax refunds were up last month at $10.1 million and that’s $5.4 million above forecast.
John Shelnutt, an economist with the Arkansas Department of Finance and Administration, says income tax refunds are finally catching up after being low in January and February. He says figures aren’t where they were in 2012, but that should even out in April.
“Well, we knew that there was a delay in IRS acceptance of electronic filings in January and that slowed the whole tax filing season down compared to last year,” said Shelnutt. “This is all related to the sequester… that negotiation that affected tax rates among other things and the implementation of the tax laws by the IRS.”
Shelnutt says delays, due to the sequester, affected the intake of filings from individuals during tax season.
Arkansas’s net available revenues in March totaled $346.4 million, which was $9.9 million below last year and $15.1 million below forecast.