AR SB234

Creates a complete income tax exemption for retirement benefits received by police officers and firefighters, regardless of amount.

Provides an income tax exemption for survivor benefits funded by the retirement pay of police officers and firefighters.

Defines "police officer" as regular or permanent employees of police departments, state police officers, or Arkansas Highway Police Division officers, excluding civilian employees and temporary emergency workers.

Defines "firefighter" as regular or permanent employees of fire departments of political subdivisions, including probationary firefighters, excluding civilian employees and temporary emergency workers.

Effective for tax years beginning on and after January 1, 2018; taxpayers claiming the police/firefighter exemption are ineligible for the general $6,000 retirement benefit exemption.