(The Center Square) – Arkansas’ revenue is up $216.4 million ahead of predictions as the state marks the halfway point of the 2024 fiscal year.
The 6.7% increase is still below the year-to-date revenue released for fiscal year 2023 at $182 million.
The state cut taxes in April, which will return $250 million to taxpayers in income taxes and $58 million to corporations, Gov. Sarah Huckabee Sanders said during the bill signing.
The year-to-date summary report showed that, in general, revenues from individual and corporate taxes decreased while refunds for those entities increased. Revenues from sales and use taxes increased by 3.1%.
Arkansas exceeded its forecasts in several areas.
Gross general revenues derived from taxes on corporate and individual incomes, alcohol, tobacco and gaming have shrunk by 1.3% compared to last year. However, net revenues are above forecasts by 6.5%, or about $251 million.
Collection of corporate income taxes fell by $69 million to an estimated $338 million but remains above the current forecast by $89 million or 36%. Corporate refunds increased by $7.5 million over last year’s totals to $39.1 million.
Arkansas collected 2.1% less in individual taxes than the previous fiscal year and paid an estimated $225 million in individual tax refunds. Individual tax revenues are at $1.7 billion, $38 million less than the previous year, but remain on course to exceed the forecast by 7.2% for the current reporting period. Individual tax refund payments increased by $106 million, almost 89% compared to last year.
