Fort Smith, ARK – Arkansas experienced a significant boost in tax revenue in November, with net available general revenue rising by 8.3% compared to the same month a year ago, exceeding the state’s forecast for the month. According to the Arkansas Department of Finance and Administration (DFA), net available general revenue reached $512.6 million, an increase of $39.2 million from November 2023 and $10.9 million above the expected figure.
The DFA attributed the revenue growth to stronger-than-expected returns in both individual and corporate income taxes, as well as lower-than-anticipated refund claims. The figures mark a positive trend for the state, with November’s performance standing out despite challenges earlier in the year.
Gross general revenue for the month totaled $617.9 million, an increase of $11.3 million, or 1.9%, from November 2023. This was also $11.4 million, or 1.9%, higher than the forecast. The state’s corporate income tax and sales and use tax collections were key contributors to this growth.
Sales and use tax collections saw an uptick, reaching $294.9 million, which was $7.8 million higher than last year and $5.4 million, or 1.9%, above forecast. Meanwhile, individual income tax collections totaled $245.1 million, a decrease of $2.5 million, or 1%, from November 2023. However, this figure exceeded the forecast by $3.4 million, or 1.4%. The dip in individual income tax collections was primarily attributed to a $6.2 million drop in withholding tax revenue, a reflection of recent tax cuts.
Refunds for individual income taxes were notably lower than last year, totaling $26.8 million, which was $36.1 million less than in November 2023 and $1 million under the forecast. Corporate income tax collections also showed strong performance, with $17.3 million collected, a $5.1 million increase from the previous year and $3.2 million above expectations. Corporate tax refunds amounted to $10.5 million, slightly higher than last year but still below forecast by about $400,000.
Smaller revenue sources showed mixed results. Tobacco tax collections dropped to $15.3 million, down $1.6 million from last year and about $400,000 under forecast. Gaming tax revenue, however, performed in line with expectations, totaling $4 million, an increase of around $100,000 from November 2023.
Year-to-date, Arkansas has collected $2.74 billion in net available general revenue, down 0.9% compared to the same period last year. Despite the overall dip in year-to-date revenue, November’s performance provided a boost to the state’s fiscal outlook.
With continued growth in individual and corporate tax revenues, as well as the state’s cautious approach to refund claims, Arkansas’ financial position remains resilient heading into the final months of the year.