LITTLE ROCK, Ark. – After closing out a well-above-projections fiscal year in June, Arkansas continues to see positive rates above projections in its monthly tax revenue.
In the August general revenue report by the state Department of Finance and Administration, Arkansas brought in $1.084 billion for the month, 4.9% above last year’s rate. This amount is $46 million, or 4.4%, above what was projected for the month.
Two months into the state’s fiscal year, Arkansas has collected $1.23 billion. This revenue amount is $41.7 million, or 3.5%, above last year’s collections, per the report. The forecast is now exceeded by $39.4 million, or 3.3%.
In the last fiscal year, the state finished June with $1.628 billion surplus. This led to Gov. Asa Hutchinson calling a special session where the legislature approved tax-cut legislation.
DFA made note in the August report that the Education Adequacy Fund, supported by 2004 tax increase on select services as well as an increase in vending machine decal fees, is up by 10% from a year ago. The fund is currently at $57 million, or 10% above last year’s level at this time.
The fund provides a per-student amount to school districts, currently set at $7,349 for the 2022-2023 school year.
Tobacco tax came in $700,000 below what was forecast at $17.3 million. A year ago tobacco revenue was $2.4 million higher, DFA reported.