The Arkansas General Assembly convened Monday, June 17, for a three-day special session, called by Governor Sarah Sanders. During the session, legislators voted to lower the top individual income tax rate from 4.4% to 3.9% and also to cut the top corporate income tax rate from 4.8% to 4.3%. Both measures are retroactive to January 1 of this year.
Meanwhile, members also passed a measure to increase the homestead tax credit from $425 to $500, and to transfer $290 million to the Restricted Reserve Fund.
Legislators also approved the appropriation for the Arkansas Game and Fish Commission’s budget. (They were not able to pass the agency’s budget during the recent fiscal session.) The income tax cut is expected to total $500 million, and the increased homestead tax credit will total $50 million.
The legislature’s Arkansas Legislative Council (ALC) Occupational Licensing Subcommittee has been meeting in the interim, reviewing individual professional licensure programs. The panel will meet again in August and September and then is scheduled to make final recommendations in October for legislation to be considered during the regular session, which convenes in January.