Gov. Asa Hutchinson has called members of the 93rd General Assembly into a special legislative session to consider a tax reduction package and seven other bills. The session will begin Tuesday at 10 a.m.
The proposed tax cut bill would lower the top tax rate for individuals from 5.9 percent to 4.9 percent over the next four years. This will lower the maximum rate at which an individual is taxed from 5.9 percent to 5.5 percent in tax year 2022 and down to 5.3 percent in tax year 2023. As long as certain parameters are met the tax cut will also include reducing the rate down to 5.1 percent in tax year 2024 and finally down to 4.9 percent in tax year 2025.
The bill would also combine the low- and middle-income tax tables, and provide for a $60 non-refundable tax credit from those individuals with an income of less than $24,700.
“This bill puts us in a competitive position with other states,” Hutchinson said. “I’ve pushed to try to get down to 5 percent, and it looks like we’re going to be able to get down to 4.9 percent.”
Hutchinson said in the weekly briefing the call for the special session will include seven other bills to be discussed that are primarily cleanup matters and technical corrections.
State funds in various accounts throughout state government need to be transferred to Restricted Reserve Funds, the General Allotment Reserve Account, and the Quick Action Closing Fund.
This bill allows for more federal money from the American Rescue Plan to flow into Arkansas where it is needed.
Act 1104 which passed during the regular session changed laws related to insulin rebates. Since passage, it was determined to have unintended consequences. The goal is to repeal this bill.
Act 1041, concerning LLC laws, was passed during the regular session. It has now been determined that there was a drafting issue, and this amendment will rectify the issue.
Tax Appeals Commission
Act 586 of 2021 created the Independent Tax Appeals Commission. This bill aims to correct some language in the original act.
Tax Incentive Amendment
This bill amends income tax credit for waste reduction, reuse, or recycling equipment to allow for use of these credits by a qualified growth project.
General Assembly Security Personnel
This bill allows both chambers to hire and employ security personnel.