Arkansas Enacts Major Income and Property Tax Cuts
Governor Sarah Huckabee Sanders signs legislation reducing tax rates and increasing homestead property tax credits, while maintaining a budget surplus.
- The top individual income tax rate is reduced from 4.4% to 3.9%, and the corporate rate from 4.8% to 4.3%.
- The homestead property tax credit is raised from $425 to $500, effective retroactively from January 1.
- The tax cuts are projected to cost $483 million in the first year and $322 million annually thereafter.
- Arkansas is expected to end the fiscal year with a $708 million surplus, ensuring continued funding for essential programs.
- Opponents argue that the tax cuts favor higher earners and call for more investment in healthcare and social services.
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Americans for Tax Reform 
Newsweek 
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Associated Press 