Arkansas ended fiscal year 2025 with net available general revenue totaling $6.68 billion, generating a $367.9 million surplus, the state Department of Finance & Administration reported Wednesday.
The surplus topped the department’s projected sum by $61.7 million, 0r 71.2%.
The state recorded a $698.4 million surplus in fiscal 2024. The surplus was $1.161 billion in fiscal 2023.
Net available revenue for the fiscal year ending June 30 fell by $221.1 million, or 3.2%, from fiscal 2024. But collections exceeded the department’s forecast, revised in May, by $153.1 million, or 2.3%.
The revised projection took into account tax filing and payment extensions that delayed some collections until July 31. Gov. Sarah Huckabee Sanders ordered the extensions after multiple rounds of severe weather hit the state this spring.
The department said fewer people took advantage of the extension than expected.
Gross general revenue totaled $8.36 billion, a decrease of $349 million, or 4%, from fiscal 2024. Gross collections came in $143.8 million, or 1.7%, above forecast.
Falling income tax collections
The department attributed annual decreases in net and gross general revenue primarily to personal and corporate income tax cuts passed during the 2024 special legislative session.
Corporate income tax collections totaled $533.1 million, a decrease of $211.8 million, or 28.4%, from fiscal 2024. Collections were $72.5 million, or 15.7%, above forecast. Corporate income tax refunds totaled $137.3 million, an increase of $1.2 million from the prior year.
Individual income tax collections totaled $3.6 billion, a decrease of $255.3 million, or 6.6%, from the prior year. Collections were $37.7 million, or 1.1%, above forecast. Refunds totaled $655 million, down $128 million, or 16.3%, from fiscal 2024 and $4.4 million, or 0.7%, below forecast.
Other categories
Sales and use tax collections in fiscal 2025 totaled $3.52 billion, an increase of $47.6 million, or 1.4%, compared with the previous year. Collections were $14.6 million, or 0.4%, above forecast.
Insurance revenues, composed primarily of premium tax collections, totaled $281.8 million, an increase of $73.4 million, or 35.2%, from the previous year. The department said much of that growth was driven by the biennial transfer of $51.7 million in Insurance Department revenue to general revenue in fiscal 2025. Insurance collections totaled $14.1 million, or 5.3%, above forecast.
Among smaller revenue sources, tobacco tax collections totaled $182.9 million, down $10.4 million from fiscal 2024 but about $1.6 million above forecast.
Gaming collections totaled $62 million, up $2.9 million from the previous fiscal year and about $800,000 above forecast.
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