The Arkansas Department of Finance and Administration on Tuesday reported April net available general revenue of $862.4 million, down nearly $263 million, or 23.4%, from a year ago.
Still, the amount was $123.5 million, or 16.7%, above forecast, bringing the state’s surplus to $430.2 million with two months remaining in the fiscal year.
Arkansas ended the previous fiscal year with a $1.6 billion surplus.
Tuesday’s report comes after Gov. Sarah Huckabee Sanders signed into law a measure cutting individual and corporate income taxes by $124 million a year.
Gross general revenue in April totaled $1.1 billion, a decrease of $205.7 million, or 15.5%, from last year. Collections were 6.3% above forecast.
Sales tax collections in the month rose 6% to $287.8 million, topping the monthly forecast by $5.3 million, or 1.9%. There were mixed results in major reporting sectors but elevated results in retail, the largest sector. Motor vehicle sales tax collections fell 8.2% from April 2022.
Individual income tax collections came in at $603.3 million in April, down $207.4 million, or 25.6%, from a year ago. Collections in the category were about $900,000, or 0.1%, below forecast. The department said that individual withholding tax revenue increase by 2.9% from a year ago due to payday timing and lower withholding rates tied to tax cuts.
Individual income tax refunds totaled $172.6 million, about $58 million higher than April 2022 and $50.2 million below forecast. Refund claims below forecast add to net revenue.
Corporate income tax collections added up to $198.2 million in April, a decrease of $11.8 million. The figure was $62.1 million above forecast, which the department attributed to higher estimated payments and extensions.
Among smaller revenue sources, tobacco tax collections totaled $16.8 million, lower than a year ago and about $900,000 above forecast.
Gaming tax revenue came in at $5.9 million, higher than in April 2022 and above forecast by about $700,000.
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