The Arkansas Department of Finance and Administration on Tuesday said it projects a $214.8 million surplus for the fiscal year ending June 30.
The projection takes into account tax filing and payment extensions that have 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 figure also reflects reductions in personal income tax and corporate income tax rates during the 2024 special legislative session.
“We remain pleased with where we stand with one month remaining in Fiscal Year 2025,” state Finance Secretary Jim Hudson said in a statement. “Sales tax collection, a key economic indicator, surpassed forecast in May by $6.6 million and increased from last year by more than 5%.”
The state recorded a $698.4 million surplus in fiscal 2024. The surplus was $1.161 billion in fiscal 2023.
In May, net available general revenue totaled $439.4 million, down $20 million, or 4.3%, from the same month last year but $17.1 million, or 4.1%, above forecast. Results exceeded the forecast due to higher sales and use tax collections, along with individual and corporate income tax receipts.
Gross general revenue totaled $585.3 million, a decrease of $11.2 million, or 1.9%, compared to a year ago but $25.1 million, or 4.5%, above forecast.
Sales and use tax collections totaled $301.5 million, up $15.8 million, or 5.5%, from last year and $6.6 million, or 2.2%, above forecast. Growth in retail trade, utilities, manufacturing, and motor vehicles offset smaller losses in other categories.
Individual income tax collections were $231.9 million, down $16 million, or 6.4%, from last year. The decline reflects the impact of a rate reduction in withholding collections. The extension of the income tax due date also contributed. Compared to the forecast, collections were $10.7 million, or 4.8%, higher. Individual income tax refunds totaled $43.5 million, an increase of $2 million from last year and $6.2 million above forecast.
Corporate income tax collections totaled $14 million, a decrease of $11.9 million from last year but $5.1 million above forecast. Corporate income tax refunds totaled $12 million, $8.2 million higher than last year and $1.7 million above forecast.
Among smaller revenue sources, tobacco tax collections totaled $16.4 million, down about $200,000 from a year ago but $700,00 above forecast. Gaming collections totaled $5.9 million, topping last year’s sum by about $400,000 and in line with the state forecast.
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