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Arkansas income tax cut proposals expected to go to governor's desk Wednesday • Arkansas Advocate

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2 years ago

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Arkansas income tax cut proposals expected to go to governor's desk Wednesday • Arkansas Advocate


The Arkansas House and Senate on Tuesday each passed its version of two identical bills that seek to cut income taxes, setting up the conclusion of a special legislative session on Wednesday.

The legislation would lower the top corporate income tax rate from 4.8% to 4.3% and the top individual income tax rate from 4.4% to 3.9%, retroactive to Jan. 1 of this year. House Bill 1101 passed the House Revenue and Tax Committee on Monday while Senate Bill 1 passed the equivalent Senate committee.

Later on Tuesday, each committee passed the bill from the other chamber with no debate or dissent. Both chambers had suspended the rules so that bills could be discussed in committee without any mandatory waiting periods.

The tax cuts would be the state’s third in 15 months. In April 2023, the Legislature approved more than $100 million in tax cuts, reducing the top individual tax rate from 4.9% to 4.7% and the top corporate tax rate from 7.1% to 5.1%. During September’s special session, legislators lowered the top individual and top corporate income tax rates to 4.4% and 4.8%, respectively.

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Reducing the top income tax rates should make it easier “to recruit companies and individuals to the great state of Arkansas,” said Sen. Jonathan Dismang, R-Searcy, the Senate sponsor of both bills.

The tax cuts would reduce the state’s general revenue by a cumulative $483.5 million in fiscal year 2025, which begins July 1, and by $322.2 million each fiscal year afterward, according to the state Department of Finance and Administration’s fiscal impact report on the legislation.

The bills require $290 million in general revenue to be set aside in a reserve fund in case the money is needed to make up for any decrease in state general revenue due to the tax cuts.

Sen. Greg Leding, D-Fayetteville, speaks in opposition to tax cuts on the Senate floor during a special session on Tuesday, June 18, 2024. (Mary Hennigan/Arkansas Advocate)

Republican lawmakers have said that the state’s budget surplus means taxes are too high and that reducing income taxes will keep money in the pockets of working people. Democrats have said the cuts will primarily benefit wealthy Arkansans and reduce the state’s ability to fund its services.

Senate Minority Leader Greg Leding and Rep. Denise Garner, both Fayetteville Democrats, spoke against the tax cuts in their respective chambers.

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“I know cutting taxes is easy, it’s great in an election year… but there are things we can do to more meaningfully help make life a little bit easier for everyday Arkansans,” Leding said.

He suggested putting money into the as-yet-unused Arkansas Housing Trust Fund, creating a tax credit for people who rent their homes and making two-year community and technical colleges tuition-free.

Garner said the state should not cut taxes while the cost of Education Freedom Accounts, the school voucher program created by the LEARNS Act of 2023, is still undetermined since it is not yet available to all Arkansas families but will be next year. She also said the state could invest in programs that reduce its high rates of maternal mortality, infant mortality and teenage pregnancy.

Rep. David Ray, R-Maumelle, said cutting taxes does not mean the state is not invested in making life better for Arkansans.

“We can walk and chew gum at the same time,” Ray said. “There are always going to be societal problems and things that we have to address, and many of the people in this room, almost all of us, are working on policies that alleviate those problems.”

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Arkansas Coalition for Strong Families held a press conference on the first floor of the Capitol early Tuesday afternoon, where coalition co-chair and Arkansas Support Network CEO Syard Evans listed a wide range of policy issues that lawmakers could focus on instead of cutting taxes, such as funding the foster care system, services for people with disabilities and broader internet access.

Syard Evans, CEO of the Arkansas Support Network, leads a press conference at the Arkansas Capitol on Tuesday, June 18, 2024. (Mary Hennigan/Arkansas Advocate)

“Our state has far too many unmet needs and unfulfilled promises to once again push forward with more income tax cuts,” Evans said.

SB1 will go to the House floor for final approval Wednesday, and HB1001 will go to the Senate floor. Gov. Sarah Huckabee Sanders has expressed support for the tax cuts and is expected to sign them into law.

Additionally, the House passed House Bill 1002 and the Senate passed Senate Bill 3, identical bills to increase the homestead property tax credit from $425 to $500. Lawmakers previously increased the tax credit from $375 to $425 during the 2023 legislative session.

The credit is available to property owners on the property that is their primary residence, reducing their real property tax liability, which is paid at the county level.

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The homestead tax credit bills passed with bipartisan support, and the House and Senate Revenue and Tax committees each passed the bill from the opposite chamber with no debate or dissent later on Tuesday. The legislation is expected to pass each chamber again Wednesday and go to Sanders’ desk.



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Arkansas

Congressional subcommittee to hold hearing in Little Rock on ‘failures’ of local housing authority | Arkansas Democrat Gazette

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9 hours ago

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March 10, 2026

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Congressional subcommittee to hold hearing in Little Rock on ‘failures’ of local housing authority | Arkansas Democrat Gazette


Joseph Flaherty

jflaherty@adgnewsroom.com

Joseph Flaherty covers the city of Little Rock for the Arkansas Democrat-Gazette. A graduate of Middlebury College and Columbia University’s Graduate School of Journalism, he has worked for the newspaper since 2020.

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11 people arrested in connection with various charges in Northwest Arkansas | Northwest Arkansas Democrat-Gazette

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21 hours ago

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March 10, 2026

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11 people arrested in connection with various charges in Northwest Arkansas | Northwest Arkansas Democrat-Gazette


Arrests

Benton County Sheriff’s Office

Scott Minor, 45, of Elm Street in Jefferson City, Mo., was arrested Friday on suspicion of computer child pornography and sexually grooming a child. Minor was being held Monday in the Benton County Jail with a $150,000 bond set.

Bentonville

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Damond Drake, 52, of West Highland Drive in Rogers was arrested Saturday on suspicion of delivery of methamphetamine or cocaine. Drake was being held Monday in the Benton County Jail with no bond set.

Fayetteville

Cornelius Anderson, 33, of Dawn Street in Fayetteville was arrested Saturday on suspicion of third-degree assault on a family member, third-degree domestic battery, first-degree criminal mischief and theft of property. Anderson remained at the Washington County Detention Center Monday in lieu of $5,000 bond.

Eduard Korshakov, 37, of Prairie Dunes Trail in Fayetteville was arrested Saturday on suspicion of aggravated assault on a family or household member, kidnapping, first-degree false imprisonment, third-degree domestic battery and interference with emergency communications. Korshakov remained at the Washington County Detention Center Monday in lieu of $25,000 bond.

Efrain Quiroz, 29, of North Shamblin Avenue in Fayetteville was arrested Sunday on suspicion of second-degree battery and second-degree endangering the welfare of a minor. Quiroz remained at the Washington County Detention Center Monday in lieu of $25,000 bond.

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Leo Ward, 21, of West Tanner Drive in Fayetteville was arrested Sunday on suspicion of aggravated residential burglary and stalking. Ward was released from the Washington County Detention Center Monday on $25,000 bond.

Rogers

John Jenkins, 21, of Arkansas 351 in Jonesboro was arrested Saturday on suspicion of fraudulent use of credit/debit card. Jenkins was being held Monday in the Benton County Jail with no bond set.

Springdale

Ashlyn Neal, 19, of Powell Street in Springdale was arrested Saturday on suspicion of kidnapping, second-degree battery, endangering the welfare of a minor, resisting arrest and obstruction of government operations. Neal was released from the Washington County Detention Center Saturday on $5,000 bond.

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Jose Neal, 37, of South Powell Street in Springdale was arrested Saturday on suspicion of second-degree domestic battery, third-degree domestic battery, interference with emergency communications and resisting arrest. Neal was released from the Washington County Detention Center Saturday on $5,000 bond.

Skyler Shane, 31, of Highway 62 in Westville, Ok., was arrested Sunday on suspicion of Possession of a Schedule I or II controlled substance with intent to deliver, simultaneous possession of drugs and a firearm, carrying a prohibited weapon and disorderly conduct. Shane was released from the Washington County Detention Center Sunday on $3,500 bond.

University of Arkansas Police Department

Celso Adame-Gallegos, 19 of Jade Street in Springdale was arrested Friday on suspicion of possession of a Schedule VI controlled substance with intent to deliver. Adame-Gallegos was released from the Washington County Detention Center Saturday on $5,000 bond.

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Erika Kirk to Join Gov. Sarah Huckabee Sanders for Announcement at Arkansas State Capitol

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1 day ago

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March 9, 2026

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Erika Kirk to Join Gov. Sarah Huckabee Sanders for Announcement at Arkansas State Capitol


LITTLE ROCK, Ark. (KATV) — Arkansas leaders are set to take the stage at the State Capitol Wednesday afternoon for an announcement already drawing statewide attention.

At 1 p.m., Sarah Huckabee Sanders will appear alongside Erika Kirk, the chairwoman and CEO of Turning Point USA, at the Arkansas State Capitol.

While officials with the governor’s office have not yet released details about the announcement, the joint appearance is expected to draw significant attention from political leaders and supporters across the state.

The moment also brings renewed focus to the legacy of Erika Kirk’s late husband, Charlie Kirk, a nationally recognized conservative activist who built one of the country’s largest student political organizations aimed at mobilizing young voters on college campuses.

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In 2025, Kirk was fatally shot during a campus event at Utah Valley University. Authorities say the gunfire erupted during a gathering connected to student political programming, sending attendees scrambling for safety.

Kirk was rushed from the scene but later died from his injuries, sparking shock and an outpouring of reaction from political leaders, students, and supporters across the country.

In the weeks that followed, memorials and tributes appeared nationwide. In Arkansas, supporters and lawmakers honored Kirk’s life and work with a memorial exhibit displayed inside the Arkansas State Capitol, recognizing the influence he had on conservative youth activism and campus politics.

Following his death, Erika Kirk stepped into a leadership role at Turning Point USA, pledging to continue the organization’s mission and expand its outreach to students across the nation.

On Wednesday, Kirk will again be at the Arkansas State Capitol, this time standing beside Governor Sanders for a joint announcement, as leaders gather and the state waits to learn what the two will unveil.

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