Arkansas ends fiscal year with a $1.161 billion tax surplus
Arkansas ends fiscal year with a $1.161 billion tax surplus
Despite the large surplus, recent federal data suggests Arkansas’ economy may not be as robust in the back half of 2023.
Arkansas ended the fiscal year with a $1.161 billion tax revenue surplus driven in part by a more than 8% growth in sales tax collections. But recent federal data suggests Arkansas’ economy may not be as robust in the back half of 2023.
Total tax revenue in the fiscal year (July 2022-July 2023) was $8.85 billion, up 0.9% compared with the previous fiscal year and 1.7% more than the budget forecast, according to a report posted Wednesday (July 5) by the Arkansas Department of Finance and Administration (DFA).
Individual income tax revenue in the fiscal year was $3.916 billion, down 6.1% compared to the previous fiscal year and 1.1% above the budget forecast. Sales and use tax revenue in the fiscal year was $3.418 billion, up 8.4% compared with the previous fiscal year and up 1% above the forecast. Corporate income tax revenue was $842.5 million, up 0.6% compared to the previous fiscal year and 6.5% above the forecast.