LITTLE ROCK, Ark. – Arkansas continues to maintain a positive revenue balance through September, the third month of its fiscal year.
The Department of Finance and Administration released the September revenue report on Tuesday, showing the state at $1.776 billion in revenue through the first three months of the fiscal year. That amount is $108.2 million above revenue projections but down 4% from the same time frame a year ago.
The state brought in $705.9 million in revenue during September, which was 7.9% below September revenue last year. Despite the drop, the state’s revenue was $74.9 million, or 11.9%, above projections.
All revenue categories for September came in above their forecasted amounts, the report stated. Individual income tax for the month was slightly above last year’s figures, coming in at 9%, or $72.8, million above forecast. This was despite tax refunds being 88.6% higher than a year ago at $65.3 million.
At the end of the recent legislature special session on Sept. 14, Act 6 was signed into law, lowering the individual Arkansas tax rate to 4.4% and the corporate tax rate to 4.8%. This was shortly after lowering the tax rate during the regular session earlier in the year to 4.7% and 5.1%, respectively.
Gov. Sarah Huckabee Sanders said upon signing the legislation that the lowering is expected to decrease tax revenue by $250 million in individual taxes and $58 million in corporate taxes.
Arkansas ended its 2022 fiscal year in June with a $1.638 billion surplus, its second-largest ever.