August revenue report for Arkansas shows a 2.5% drop in the past year, officials point to tax cuts

LITTLE ROCK, Ark. – Officials said the August general revenue report from the Arkansas Department of Finance and Administration shows the expected impact of tax cuts passed earlier in the calendar year.

The report’s authors said the general revenue forecast was revised on Aug. 22 to reflect the corporate and personal tax cuts signed into law in June. Despite the downward revision, a projected $280.2 million surplus for the Arkansas is expected for the fiscal year ending June 30.

The Wednesday report showed net available general revenues year-to-date were down 2.5% or $27.2 million from a year ago. At the same time, the revenue total is $1.05 billion, or $9.9 million above forecast.

Also in the year-to-date category, the report stated that individual income tax collections were $47.5 million below what they were this time a year ago, amounting to an 8.9% drop. Individual tax refunders were down $6.4 million from the previous year, or 14.3%.

Corporate income taxes followed the same trend as individual tax in the year-to-date report, down $13.6 million from a year ago. Income from corporate income tax lags the forecast by $4.6 million, or 14.6%.

For August alone, net available general revenue was $516 million, a 3% drop from August a year ago. Individual income tax collections were down $2.8 million from August 2023, and corporate tax collections were down $5.3 million.

Contributions to the Education Adequacy Fund were net $60.9 million, or 3.6% about 2023 collections.

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