Jan 6, 2023 - Business
Arkansas sees revenue collections tick up
The state's general revenue in December hit $773.2 million, up 7.4% or $53.6 million from December 2021.
- The numbers come from the Arkansas Department of Finance and Administration.
Why it matters: The money is used to pay for state government, infrastructure, education, public assistance, corrections, Medicaid and transportation.
By the numbers: Better-than-projected tax collections largely drove the December increase.
- Finance Department Secretary Larry Walther told the Arkansas Democrat-Gazette that income tax payments reflecting tax year 2022 liabilities pushed the forecast for corporate and individual income tax categories.
- Individual taxes were $288.9 million for the month, up 5.3% year over year.
- Corporate tax collections were $151.5 million, up nearly 11% from the previous December.
Context: In August, Gov. Asa Hutchinson signed a law to reduce individual income tax to 4.9%, the lowest in state history. The reduction was retroactive to Jan. 1, 2022.
- The top corporate tax rate fell to 5.3% from 5.9% on Jan. 1.
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