Arkansas March revenue down from 2023 but above forecast, year pacing nearly $80M above projection

LITTLE ROCK, Ark. – The Arkansas March revenue report shows the state with a net surplus despite revenues being below what they were this time last year.

Officials reported that as of March 31, Arkansas had a net available general revenue of $4.87 billion for the fiscal year, which is $77.8 million above forecast. The report stated the surplus comes despite revenue being $288.7 million below what it was this time a year ago.

The figures show that personal and corporate tax collections dropped while refunds increased, but this was offset by a jump in sales and use tax reflecting inflation’s impact.

State income tax revenue was down over the previous year, with refunds above for the same time period, reflecting the impact of tax-cut legislation passed in 2023. Corporate income tax followed this same trend of lower revenue and higher returns.

Sales and use tax, however, was $72.6 million above this time last year and $26.6 million above forecast. The report noted that most major reporting sectors of sales tax displayed growth over the prior year.

For March alone, the state collected $34.4 million above last year and $67.2 million above forecast. The net available revenue in income, corporate and sales tax, was all above forecast for March, while tax refunds for individuals and corporations were below forecast levels.

Officials said March motor vehicle sales tax collections dropped 19.2% compared to the previous year.

March is the ninth month of the state’s fiscal year.

Further information, including the full report, may be seen at DFA.Arkansas.gov.

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