Arkansas Legislature Approves Major Tax Cuts, Saving $800 Million and Lowering Income Tax to 3.9%

Jun 19, 2024, 11:08 PM

Arkansas lawmakers have advanced tax-cut bills. The Arkansas Legislature has approved a bill that would save taxpayers more than $800 million over the next two years. Governor Sarah Huckabee Sanders recommended the tax code changes during a special session called on June 11. The new legislation lowers the state's income tax rate to 3.9%, making it the lowest among Southern states with an income tax. Since taking office last year, Governor Sanders has cut income taxes three times, returning half a billion to Arkansans. The Arkansas House and Senate passed identical tax cut bills with only a few lawmakers opposing. The governor has signed the income and property tax cuts into law.