SB571 Summary

• Reduces individual income tax rates for residents, individuals, trusts, and estates with net income between $4,500-$8,899 from 2% to 1%, effective for tax years beginning January 1, 2020.

• Creates a new e-cigarette privilege tax equal to the total tax levied on other tobacco products, to be imposed, reported, and administered the same manner as existing tobacco product taxes, effective the first day of the second calendar month after the act's effective date.

• E-cigarette privilege tax revenues are credited to the General Revenue Fund Account of the State Apportionment Fund for general revenue purposes.

• Establishes the Cigarette Tax and Income Tax Reform Study to be conducted jointly by four legislative committees with meetings at least quarterly and a final report due December 1, 2020, to examine additional cigarette taxes and income tax reduction options for low- and middle-income Arkansans.

• Requires the Department of Finance and Administration, Director of Arkansas Tobacco Control, and Arkansas Tobacco Control Board to adopt implementing rules by September 1, 2019.