Arkansas Advocate: State’s revenue for fiscal year so far $103 million above forecast

PHOTO: The Arkansas State Capitol seen from the northeast on Nov. 11, 2025. | Photo by Sonny Albarado/Arkansas Advocate

By TESS VRBIN | Arkansas Advocate

Arkansas collected less money in net general revenue in December 2025 than it did a year earlier due to a decrease in corporate income tax collections, state finance officials said Monday.

Net general revenue totaled $618.6 million, which was $7.8 million below December 2024 collections and $5.8 million below the forecast amount, the Department of Finance and Administration said.

The state’s net revenue for the fiscal year, which began July 1, totals $3.4 billion. That’s nearly $103 million above forecast.

Arkansas has consistently lowered corporate income taxes over the past few years. As of June 2024, the top corporate income tax rate is 4.3%, a decrease from 5.1% since April 2023.

Corporate income tax collections in December totaled $78.1 million, a decrease of $3.4 million from December 2024 and $5.5 million below the forecast amount.

Gross general revenue and individual income tax refunds were both above projected amounts, according to the report. Finance and Administration Secretary Jim Hudson called the state’s revenue collections stable. 

“The department will issue an updated forecast in late January for the remainder of fiscal year 2026 and for fiscal year 2027 in preparation for the upcoming fiscal legislative session,” Hudson said in a statement. 

Arkansas lawmakers are set to return to the Capitol in April for a legislative session intended to focus primarily on the state’s budget.