LITTLE ROCK, Ark. — Gov. Asa Hutchinson has called a Special Session that's set for Dec. 7 at 10 a.m.
The governor called upon members of the 93rd General Assembly to enact reductions to state income taxes.
“The key reason for the session is the tax-reduction bill," Gov. Hutchinson said. "I spoke with both the Speaker of the House, Matthew Shepard and Senate Pro Tem Jimmy Hickey, and they confirm that we have more than a majority vote on the tax bills to have that passed. They feel confident with the support for that."
The proposed tax cut bill reportedly aims to reduce the top tax rate over the next four years from 5.9% to 4.9%.
Over the next four years, this would mean that the maximum rate to which a person could be taxed would drop from:
- 2022 Tax year: 5.9% to 5.5%
- 2023 Tax year: 5.5% to 5.3%
- 2024 Tax year: 5.3% to 5.1%
- 2025 Tax year: 5.1% to 4.9%
The bill will reportedly combine both the middle and low-income tax tables and provide individuals with an annual income of less than $24,700 with a $60 non-refundable tax credit.
"This bill puts us in a competitive position with other states. I've pushed to try to get down to 5%, and it looks like we're going to be able to get down to 4.9%," Gov. Hutchinson said.
The governor mentioned during his weekly briefing that 7 other bills will also be discussed during the special session. According to a press release from Gov. Hutchinson, those bills at the center of discussion will include:
- Fund Transfers
- Appropriation Bill
- Insulin Bill
- LLC Bill
- Tax Appeals Commission
- Tax Incentive Amendment
- General Assembly Security Personnel
