Arkansas’s state revenue report for August shows a decrease in most numbers compared to last year, largely due to multiple rounds of tax cuts since 2023. The state has collected $36.1 million less in gross general revenue compared to the same period last year. Net available general revenues were also down by $27.2 million year over year, but still above the state’s forecast. Despite the decrease in some areas, Arkansas is still projecting a fiscal-year-end surplus of $280.2 million.
Corporate income tax collections saw a significant drop of 33.4% compared to last year, finishing 14.6% below forecast. Individual income tax collections were also down by 8.9% year over year. However, these decreases were partially offset by lower-than-expected individual income tax refunds and overperformance in sales and use tax collections.
The state’s revenue report highlights the impact of recent tax cuts by the Arkansas Legislature and Gov. Sarah Huckabee Sanders in boosting economic growth but also causing revenue declines. While the state is on track for a surplus, concerns remain about the sustainability of the revenue forecast.Despite the decrease in some areas, Arkansas is still projecting a fiscal-year-end surplus of $280.2 million.
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Photo credit arktimes.com
