Arkansas' October revenue collections ticked up
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Arkansas' general revenue collections in October beat the month's forecast — but net revenue is down for the 12-month period.
Why it matters: The $629.4 million collected in October is used to pay for state government, infrastructure, education, public assistance, corrections, Medicaid and transportation.
- The data comes from the Arkansas Department of Finance and Administration.
By the numbers: Individual income and sales and use taxes are the state's two largest sources of revenue.
- Since the start of fiscal year 2026 on July 1, the state's gross revenue collections — excluding any tax refunds — were up $14.1 million from fiscal 2025.
Zoom in: October collections beat the forecast by $10.8 million.
- Sales and use taxes collected for the month were $304.3 million, up more than 2% from 2024.
Individual taxes for October were $266.8 million, down 3% from the previous year, possibly due to an extension in the income tax filing deadline until Dec. 3.
- Corporate tax collections were $23.9 million, up $1.4 million from the previous year, according to DFA.
Yes, but: When comparing rolling 12-month totals, the state's revenue is down.
- Net revenue — which deducts tax refunds and is an indicator of how much the state has to spend — between Nov. 1, 2024, and Oct. 31, 2025, was $6.72 billion.
- That's down from $6.83 billion during the previous period and down from $7.01 billion the period before.
What they're saying: "Although there are some smaller tax cuts included, it is primarily the result of both the individual and corporate income tax rates, which have been lowered in each of those collection periods," DFA spokesperson Scott Hardin said in an email to Axios.
What we're watching: Gov. Sarah Huckabee Sanders has said eliminating the state income tax is a goal of her administration.