Arkansas’ net available general revenue totaled $636.3 million, down $55.3 million, or 8%, from last year, the state Department of Finance and Administration (DFA) reported Thursday.
The sum was $1.8 million, or 0.3%, below forecast.
Gains in individual income tax and sales tax offset lower corporate income tax collections, the department said. Most smaller revenue sources met or exceeded projections.
In a statement, DFA Secretary Jim Hudson said the first quarter of the fiscal year ended with revenue above forecast by $74 million, indicating that the state’s revenue picture remains stable.
In September, gross general revenue totaled $726.6 million, which was $56.6 million, or 7.2% below last year and $0.6 million, or 0.1%, above forecast. Higher individual income tax and sales tax collections drove year-over-year gains in gross collections.
Individual income tax collections in September came to $331.7 million, down $34.3 million, or 9.4%, from last year but $16.1 million, or 5.1%, above forecast. DFA reported stronger-than-expected withholding in the month. Refunds totaled $20.7 million, about $700,000 higher than last year and $2.8 million above forecast.
Sales and use tax collections totaled $286.7 million, up $7.3 million, or 2.6%, from last year and $6.7 million, or 2.4%, above forecast. Large economic development investment incentive refunds for prior-year purchases affected both September 2024 and September 2025 collections. Excluding these refunds, sales and use tax grew 4.6% from last year, the department reported.
Corporate income tax collections were $76.4 million, down $25.9 million from last year and $20 million below forecast. Refunds totaled $2.6 million, about $100,000 lower than last year and $1.1 million above forecast.
Among smaller categories, tobacco tax collections totaled $15.1 million, about $100,000 below last year and $800,000 above forecast.
Gaming tax collections totaled $4.5 million, up about $300,000 from a year ago and above forecast by $100,000.
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