Govenor Sanders enacts bills that will lower income tax rate

On Wednesday, Arkansas Governor Sarah Huckabee Sanders enacted bills that will lower the state’s top individual income tax rate from 4.4% to 3.9% and the top corporate income tax rate from 4.8% to 4.3%, effective retroactively from January 1, 2024. Additionally, she approved legislation increasing the state’s homestead property tax credit from $425 to $500 per parcel, starting in assessment years on or after January 1, 2024. 

Sanders also discussed her approach to marketing in economic development, which includes recruiting through both corporate and personal income tax cuts.

Sanders stated that her primary focus is on personal income tax. She acknowledged that while other ideas arise, her main goal is to concentrate on phasing out the state income tax.

Sanders said-quote “With the cost of essentials like milk, eggs, and bread rising significantly over the past three years, these tax savings are more crucial than ever.”  “As the tax rates decrease, the population, labor force, and economy are expanding.”