Arkansas Senate Approves Property Tax Cut and Pushes for Further Tax Relief

The Arkansas Senate has approved a property tax cut aimed at saving homeowners $56 million annually. Senate Bill 263, set to take effect in 2026, raises the homestead property tax credit by $100 to $600 per year. Currently, the credit stands at $500, benefiting approximately 708,000 homeowners across the state.

In addition, Governor Sarah Huckabee Sanders and legislative leaders are advocating for further tax relief through House Bill 1685. This proposal seeks to exempt food and groceries from the state’s one-eighth cent sales tax, which was introduced in 1996 to support conservation efforts. HB 1685 would reduce taxes by $10.9 million annually, though it does not impact local sales taxes on groceries.

The state’s economy remains strong, with February’s revenue report showing a 5% increase over forecasted revenues. Governor Sanders expressed confidence that agencies affected by the proposed grocery tax exemption, including the Game and Fish Commission and Parks and Tourism Department, would still maintain healthy budgets.

In other legislative news, the House passed HB 1489, a bill to authorize nitrogen gas for executions in Arkansas. Supporters argue that nitrogen gas is more humane and easier to source than lethal injection chemicals, though opponents dispute this claim. The bill is now under review by the Senate Judiciary Committee.

Additionally, the Senate approved Act 238, criminalizing unlawful squatting and making it a Class B misdemeanor. This law is expected to streamline the eviction process for law enforcement, eliminating the need for civil lawsuits.

Lastly, the Senate passed Senate Bill 320, which makes technical updates to the juvenile justice system, aiming to simplify and clarify existing laws for better accessibility and understanding for families and social services workers.

These legislative actions reflect ongoing efforts in Arkansas to adjust tax policies and address important social issues.