Arkansas' tax revenue is down, but remains ahead of projections
The state's general revenue in April hit $1.12 billion, down more than 15% — $205.7 million — from April 2022, per the Arkansas Department of Finance and Administration.
- April is traditionally a big month for tax collections because it's the IRS filing deadline.
- However, because of a state tax cut package in August, collections were down, John Shelnutt, chief economic forecaster for DFA, told the Arkansas Democrat-Gazette.
Why it matters: The money is used to pay for state government, infrastructure, education, public assistance, corrections, Medicaid and transportation.
By the numbers: Total revenue for the first 10 months of the state's fiscal year, which began July 1, was $6.02 billion, down 2.6% from the same period a year earlier.
- Yes, but: General revenue was 7.7% above forecast through the end of April.
Flashback: The state ended fiscal 2022 with a record surplus of nearly $1.63 billion.
Context: The August tax cut reduced individual income tax to 4.9%, the lowest in state history at the time. The reduction was retroactive to Jan. 1, 2022.
- Gov. Sarah Huckabee Sanders signed Act 532 in April, which further reduced the top individual income tax rate to 4.7% and the top corporate income tax rate to 5.1%.
- Those cuts are retroactive to Jan 1.
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