Arkansas' April tax collections spiked

Arkansans have paid more than $3.07 billion in income taxes so far in fiscal year 2023, according to the state Department of Finance and Administration.

• Companies operating in the state paid roughly $712 million in the 10 months since the fiscal year began.

Of note: Collections spike each April due to federal and state tax deadlines.

Why it matters: The money is used to pay for state government, infrastructure, education, public assistance, corrections, Medicaid and transportation.

State of play: Gov. Sarah Huckabee Sanders has said her goal is to eliminate individual income taxes, but she hasn't offered a clear outline of how to accomplish it.

• In April, she signed a $124 million tax cut, lowering the highest individual tax rate to 4.7% from 4.9% and the top corporate income tax rate to 5.1% from 5.3%.
• The cuts were retroactive to Jan. 1.

The bottom line: The Department of Finance and Administration is projecting the state will end fiscal 2023 with a surplus of $1.03 billion, down from 2022's record of $1.63 billion but up from November projections of about $598 million.