Arkansas' fiscal 2026 revenue rises despite December dip
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Arkansas' gross general revenue collections in December were $714.6 million, down from $723.6 million from a year earlier, per the Arkansas Department of Finance and Administration.
Why it matters: The money is used to pay for state government, infrastructure, education, public assistance, prisons, Medicaid and transportation.
State of play: Despite the December dip, net available revenue for the first two quarters in the state's fiscal year was nearly $103 million above forecast.
By the numbers: Gross revenue was down partly because individual income tax collections for December were down $10.7 million, though it was $5.4 million higher than forecast.
- There was one fewer payday in December than in 2024, accounting for fewer individual income tax withholdings DFA spokesperson Scott Hardin said.
Gross collections also were impacted by a $3.4 million year-over-year decrease in corporate income tax collections, which totaled $78.1 million in December, $5.5 million below forecast.
- Hardin said lower corporate collections can be attributed to Act 485 of 2023, which began phasing out the "throwback rule" that requires Arkansas companies to claim money made in other states if the product or service was not taxed in the other state.
The fine print: Net available revenue — which deducts individual and corporate tax refunds and some other expenses — was $618.6 million for December, down 1.2% from a year before.
What we're watching: The Arkansas General Assembly has a fiscal session in even-numbered years and is set to convene in April. Lawmakers are expected to focus on the state's budget.