$322 Million Tax Cuts: Arkansas Governor Sanders Signs Legislation Lowering Income, Corporate, and Property Taxes

Arkansas Governor Signs Historic Tax Cuts

Arkansas Income and Corporate Tax Rates Slashed

According to KNWA FOX24, on June 19 Arkansas Governor Sarah Huckabee Sanders signed new legislation that cuts both income and property taxes for residents and businesses in the state. This new law aims to put more money back into the pockets of Arkansans and support economic growth. The state’s individual income tax rate has been lowered from 4.4% to 3.9%. This reduction will affect residents who earn $25,000 or more annually. According to Scott Hardin spokesperson for the Department of Finance and Administration about 1.1 million taxpayers in Arkansas will benefit from this change. “Next year they will keep an additional $256 million in their pockets because of that tax cuts. And that’s not just next year. That’s every year going forward” said Hardin. For example someone earning around $56,000 per year can expect to save between $200 and $280. These savings are a result of subtracting the new 2024 tax rate from the 2023 tax rate.

In addition to personal income tax cuts the top corporate tax rate is being reduced from 4.8% to 4.3%. Hardin noted that about 7,800 companies will benefit from this change saving a total of $66 million annually. Supporters of these tax cuts argue that Arkansas is in a strong economic position to make these changes. “I think Arkansans should be proud to know their state is doing well meaning the economy is doing well. We’re collecting more money than we anticipated” said Hardin. However not everyone is in favor of the tax cuts. Opponents believe that the state should prioritize funding essential services such as addressing the high maternal mortality rate. State Representative Nicole Clowney a Democrat from Fayetteville voiced her concerns: “I know there is so much more work we need to do to fund our programs better in the state so I’m a ‘no’ on tax cuts until I feel like Americans are getting the services they need.” These tax cuts are retroactive to January 1 of this year. When residents file their taxes next year they will see the impact of these changes when they file in 2025 for the 2024 tax year.

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$322 Million Tax Cuts: Arkansas Governor Sanders Signs Legislation Lowering Income, Corporate, and Property Taxes  (Talk Business & Politics)

Arkansas Tax Legislation Boosts Homestead Credit to $500, Aimed at Economic Growth

Furthermore, Governor Sanders increased the homestead tax credit from $425 to $500 a move expected to cost the state $46 million. This credit will provide further relief to homeowners in Arkansas. Overall the new tax legislation is designed to benefit both individuals and businesses ensuring that more money stays within the state to promote economic growth and development.

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