Arkansas revenue above forecast in September 2024 report, income & corporate tax revenue down

LITTLE ROCK, Ark. – Arkansas revenue remains above forecasts despite the impact of corporate and individual tax cuts at the start of the year.

The September Department of Finance and Administration report shows the state’s year-to-date net available general revenue is $1.7 billion. That puts net year-to-date revenue $41.6 million below what it was a year ago, but above forecast by $17.7 million, or 1%.

According to the report, individual income tax collections for the year to date were $851.4 million, which was $31.3 million below collections from a year ago. Despite this, collections were $31.9 million above forecast, a 3.9% bump.

Individual income tax refunds were $58.2 million for the year-to-date, which is $7.1 million below refunds from a year ago. Refunds were, however, $900,000 above forecast in the report.

Corporate income tax year-to-date was 129.3 million, down $31.3 million from a year earlier. Corporate tax refunds were down $4.3 million from a year earlier at $11.5 million.

In a June special session, the legislature lowered individual income tax from 4.4% to 3.9% retroactive to Jan. 1 for Arkansans making more than $24,300 annually. The corporate tax rate moved to 4.3% from its previous 4.8%.

DFA Secretary Jim Hudson said the collections boded well for the state.

“September revenue collection was in line with projections, placing the state $17.7 million above forecast three months into Fiscal Year 2025,” Hudson said. “Our state income tax withholding, which increased 6% over September 2023, highlights the continued strength of Arkansas’ labor economy.”

Hudson added that with September’s results, the DFA outlook remains positive for the state’s yearly revenue forecast.

The Arkansas fiscal year begins on July 1.

For the latest news, weather, sports, and streaming video, head to KLRT - FOX16.com.