Tax Relief For Arkansans On The Upcoming Special Session Agenda
ARK SPECIAL SESSION AGENDA- Arkansas lawmakers will meet in special legislative session to take place in August, the main focus of which is to deal with Arkansas’ $1.6 billion surplus fund, a fund that has grown thanks to increased revenue collections caused by the state’s economic growth of late. Governor Asa Hutchinson has called for the special session as he wants lawmakers to provide tax relief for Arkansas taxpayers who are currently dealing with higher inflation. Hutchinson wants to speed up lowering the personal state income tax rate which has already been approved by lawmakers to 4.9%, a rate that as of now is scheduled for 2025.
Speaker of the House – Republican Matthew Shepherd of El Dorado appeared on Arkansas Public Television this week to explain how the lower tax rate would affect Arkansans.
“Arkansans will see it if they get a rate reduction at the top end then that could impact their withholdings so they may see more money in their paycheck or ultimately when they go file their state taxes next year, that either decreases what they’ll pay or potentially could lead to a refund,” Shepherd explained.
Other possible tax relief to be addressed by lawmakers may include matching the state’s business deduction rate to the federal amount on the Section 179 tax deduction for purchasing equipment. The governor has been urged to do this by the Agriculture Council of Arkansas. A move that would help not only farmers but small to medium sized businesses facing increases in costs for machinery and equipment.