According to the Arkansas Department of Finance and Administration companies operating within the state have paid approximately $712 million in taxes over the course of the first 10 months of the fiscal year.
Residents of Arkansas have paid a total of more than $3.07 billion in income taxes during the current fiscal year of 2023
Additionally, it is worth noting that tax collections experience a surge every April, coinciding with the federal and state tax deadlines. These tax contributions hold significant importance as they fund various aspects of the state government. The funds are allocated toward state infrastructure, education, public assistance, corrections, Medicaid, and transportation.
Governor Sarah Huckabee Sanders has expressed her objective of eliminating individual income taxes
In April, Governor Sarah Huckabee Sanders signed a tax cut totaling $124 million. The tax cut included a reduction in the highest individual tax rate from 4.9% to 4.7% and a decrease in the top corporate income tax rate from 5.3% to 5.1%. Importantly, these cuts were retroactively applied from January 1st.
Looking ahead, the Department of Finance and Administration projects that the state will conclude fiscal year 2023 with a surplus of $1.03 billion. While this figure is lower than the record surplus of $1.63 billion achieved in 2022, it surpasses the initial projections from November, which estimated an excess of approximately $598 million.