by Michael Tilley (mtilley@talkbusiness.net)
The previously estimated Arkansas budget surplus of $1.473 billion grew to a record $1.628 billion, which resulted in Gov. Asa Hutchinson on Tuesday (July 5) calling for an Aug. 8 special session to discuss possible tax cuts.
“Today, I am announcing I will call a special session of the General Assembly to reduce the rate of our tax collection. The special session will be the week of August 8. The specific items on the call in addition to tax relief will be announced at a later time as further discussions are held with the General Assembly,” the governor said in a Tuesday afternoon statement.
A record fiscal year 2022 surplus was thanks in large part to a more than 5% annual growth in income tax revenue and a more than 9% growth in sales tax revenue. Total tax revenue in fiscal year 2022 (July 2021-June 2022) was $8.773 billion, up 8% – or $651.2 million – compared with a robust fiscal year 2021 in which the tax surplus hit the previous record of $945.7 million. The Arkansas Department of Finance and Administration (DFA) reported the fiscal year numbers on Tuesday (July 5).
