AR HB1870

Allows individuals age 65 and older who are residents of Arkansas border cities to elect to pay income taxes under the tax laws of an adjacent bordering state instead of Arkansas

"Qualified individuals" may choose to have retirement income taxed either under Arkansas law or under the bordering state's retirement income tax laws, including applicable exemptions

Alternatively, qualified individuals may elect to have all income taxed either under Arkansas law or under the bordering state's tax laws for individuals age 65 and older, including applicable exemptions

Individuals electing to use a bordering state's tax rate must file a sworn statement with their income tax return certifying they are a resident of the specific border city used to determine the bordering state

Effective for tax years beginning on or after January 1, 2019