Arkansas’ net available general revenue in April totaled $647.9 million, marking a decline of $170.9 million, or 20.9%, from the same month last year, the Department of Finance and Administration reported Friday.
April’s net available general revenue was $79.5 million, or 10.9%, below forecast, a shortfall that primarily stems from lower collections in individual and corporate income taxes.
Jim Hudson, secretary of the Department of Finance & Administration, attributed the decrease to tax filing and payment extensions that Gov. Sarah Huckabee Sanders ordered after multiple rounds of severe weather hit the state in April.
Another factor, Hudson said, was a shift in payments this year from April to earlier in tax filing season.
For the fiscal year, the state is $52 million ahead of forecast, on top of a projected surplus of $279 million. “We believe our year-to-date results provide ample margin to mitigate any revenue that may be shifted from the last two months of FY 2025 into FY 2026 due to the extensions,” Hudson said in a statement.
Gross general revenue in April amounted to $940.6 million, a decrease of $172.8 million, or 15.5%, from last year and $94.8 million, or 9.2%, below forecast.
Individual income tax collections totaled $494.2 million, a decrease of $112.5 million, or 18.5%, from the previous year. The decrease reflects a reduction in withholding rates and the impact of one fewer payday for withholding collections, the department reported. Additionally, the extension of the income tax due date and earlier collections contributed to the decline. Compared to the forecast, individual income tax collections were $57.4 million, 10.4%, below projections.
Individual income tax refunds totaled $195.9 million, which is $7.3 million higher than last year but $14.2 million under forecast.
Sales and use tax collections totaled $302.9 million, an increase of $2.3 million, 0r 0.7%, compared to the previous year. But the sum fell $4.5 million, or 1.5%, short of the forecast. Results in the major categories of sales and use taxes were mixed.
Corporate income tax collections totaled $111.7 million, a decrease of $61.7 million from last year and $32.8 million below forecast. The majority of the shortfall came from lower-than-expected extension payments.
Corporate income tax refunds totaled $17.4 million, which is $4 million lower than a year ago and $3 million higher than forecast.
Tobacco tax collections totaled $13.8 million, a decrease of $1.5 million from last year and about $600,000 below forecast.
Gaming tax collections totaled $6 million, down from $6.2 million a year ago and about $300,000 below forecast.
Sign up for Daily E-news
