LITTLE ROCK, Ark. – The Arkansas State Legislature gathered Tuesday morning to begin its special session related to income tax cuts. Proposed legislation advanced through committee Tuesday.
The main legislation is SB1 with a corresponding act in the House. The bill, sponsored by Republican State Sen. Jonathan Dismang (R), would lower Arkansas’ top income tax rate to 4.9%. People making less than $87,000 would receive a temporary nonrefundable $150 tax credit.
DFA Assistant Commissioner Paul Gehring spoke in committee and speculated that the average Arkansas taxpayer could save several hundred dollars through all the mechanisms related to tax cuts.
State Sen. Jim Hendren (I) said he anticipates easy passage.
“You’ll be able to see [the bill] debated on the floor probably tomorrow or Thursday for certain, and then passed,” Hendren said. “It’s a good opportunity to see how the process works in a very limited scope.”
In committee, some legislators expressed concern about whether this legislation could risk millions of dollars in federal American Rescue Plan funding. The DFA argued that it would not.
The session will resume Wednesday at 9 a.m.