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AR SB1

Bill

Status

Passed

6/19/2024

Primary Sponsor

Jonathan Dismang

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Origin

Senate

94th General Assembly (2024 Special)

AI Summary

  • Increases the income threshold for the lowest individual tax bracket from $87,000 to $89,600 and reduces the top individual tax rate from 4.4% to 3.9% for those earning $25,000 to $89,600, effective for tax years beginning January 1, 2024.

  • Reduces the top corporate income tax rate from 4.8% to 4.3% for net income exceeding $11,000 for both domestic and foreign corporations, effective for tax years beginning January 1, 2024.

  • Transfers $290,000,000 from the General Revenue Allotment Reserve Fund to the Arkansas Reserve Fund Set-Aside on July 2, 2024.

  • Declares an emergency to allow taxpayers and employers time to plan for and implement the tax law changes and to enable the Department of Finance and Administration to update forms, software, and train personnel.

  • Becomes effective upon Governor's approval or expiration of veto period, without waiting for the normal legislative enactment process.

Legislative Description

To Reduce The Income Tax Levied On Individuals, Trusts, Estates, And Corporations; To Transfer Surplus Funds To The Arkansas Reserve Fund Set-aside; And To Declare An Emergency.

Last Action

Notification that SB1 is now Act 1

6/19/2024

Committee Referrals

Revenue and Taxation6/18/2024
Revenue & Taxation6/17/2024

Full Bill Text

No bill text available