Arkansas DFA says 2023 state tax refunds paid through July are nearly two times 2022 levels

LITTLE ROCK, Ark. – Arkansas taxpayers have over a million reasons to be happier with their tax returns so far this year.

Officials with the Department of Finance Administration said that as of July 19, taxpayers have received $634 million in refunds since Jan. 1. For the same period last year, DFA shows $344 million in tax refunds were made.

Despite this 84% jump in the amount paid out in refunds, the number of tax returns actually processed has increased only slightly. BY this point in 2022, DFA had processed 1,305,026 returns. For 2023 that number has gone up to 1,329,348, a less than 2% uptick.

These will not be the final figures for the year. In 2022 DFA processed 1,449,488 returns to issue $480 million in refunds.

Other figures show a strong Arkansas economy. The state ended its fiscal year on June 30 with a $1.1 billion surplus, its second largest after 2022’s all-time record $1.6 billion surplus.

Unemployment in Arkansas is at a record-low 2.7% against a national 3.6% rate.

Gov. Sarah Huckabee Sanders, who signed legislation lowering the top individual tax rate in the state from 4.9 to 4.7% in April, indicated Tuesday that a special session to further lower taxes was possible.

The governor also said she was interested in making further investments in education but did not give details. The remarks were made while speaking to the Little Rock Rotary Club.

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