Arkansas State Senator Ronald Caldwell, R-Wynne, says he’s strongly in support of increasing the Homestead Property Tax Credit. The Arkansas House already voted 92-to-0 April 16, to increase the amount $75-dollars, from $600 to $675.
The resolution is not a bill, but instead gives permission for a non-appropriation bill to be filed “if” the Arkansas senate also approves it by a two-thirds majority.
While Speaking Sunday on the statewide news program “Talk Business and Politics,” Sen. Caldwell also said he wanted to clear up any possible misconception that somehow the Arkansas Homestead Property Tax Credit might take revenue away from county tax funds.
Caldwell explained why that does not happen. “If you have a tax bill of $2,000 your county, that tax revenue goes to your schools and to your county. And what the state does is actually give you a tax refund out of the state treasury and send that $600 back to your county on your behalf.”
Lawmakers had already increased the Homestead property tax credit by $100-dollars last year. But the sponsor of the resolution, Arkansas State Representative Bart Schultz, R-Cave City, has said the rising ‘cost of living’ inspired the timing, along with a report from the Arkansas Department of Finance and Administration which showed there are funds to cover the costs of a higher property tax credit.
Arkansas Homestead Tax Credit Increase Moves Forward in Fiscal Session
