State Finishes Fiscal Year With Record $1.6B Surplus

Arkansas on Thursday finished fiscal year 2022 with a record $1.63 billion revenue surplus, rising from the previous high of $945.7 million set in fiscal 2021, the Arkansas Department of Finance and Administration reported.

The surplus came in higher than the revised May forecast of $1.47 billion.

Net available general revenue totaled $7.48 billion, up $632.1 million, or 9.2%, from fiscal 2021 and 2.1% above forecast.

Collections were above forecast and higher than the previous fiscal year in all major categories, with high growth in sales tax collections for a second straight year. Sales tax collections totaled $3.15 billion, an increase of $270.9 million, or 9.4%, from the previous year and 1.3% above forecast. That follows an increase of 13.4% in fiscal 2021.

Individual income tax collections totaled $4.17 billion, up $202.3 million, or 5.1%, from fiscal 2021. The figure is $38.5 million, or 0.9%, above forecast.

Corporate income tax collections for the year totaled $837.2 million, an increase of $185.2 million, or 28.4%, from fiscal 2021. The figure is $54.5 million, or 7%, above forecast.

For the month of June, net available general revenue totaled $779 million, an increase of $38.4 million, or 5.2%, from the same month a year ago. 

Revenue was above forecast in all major categories.

Sales and use tax collections totaled $285.9 million. That's up $29.1 million, or 11.3%, from a year ago and above forecast by $40.8 million, or 16.7%. The department reported that motor vehicle sales tax collections fell 8.2% compared to the same period a year ago, when demand was higher and stimulus spending provided a boost.

Individual income tax collections in June totaled $338.7 million, rising by $10 million, or 3%, compared to the same month in 2021. Collections were above forecast by 10.8%. Withholding tax from payrolls were up by 1.6% from year ago, which the department said reflects a mix of effects from income tax reduction and continued growth in payroll earnings.

Corporate income tax collections totaled $133.5 million, up $18.5 million, or 16.1%, from June 2021 and 66.4% above forecast.

Among smaller revenue sources, tobacco revenues exceeded forecast by $2.3 million. Results in gaming were below forecast by $0.4 million.