Mullenix & Associates
Governor Sarah Sanders called for a special session starting at noon on Monday, June 17. The announcement follows the recent fiscal session, where the General Assembly adjourned without passing an appropriation for the Arkansas Game and Fish Commission (AGFC). Along with reconsidering the FY2025 budget for the AGFC, expected highlights of the upcoming special session include:
Legislative leaders will propose reducing the top income tax rate from 4.4% to 3.9% for Arkansans reporting more than $89,600 in net income and the top corporate income tax rate from 4.8% to 4.3% for eligible companies with net incomes exceeding $11,000, retroactive to January 1, 2024.
The General Assembly’s decision to pursue additional tax cuts was solidified after the Department of Finance and Administration (DFA) released higher projections for the state’s general revenue surplus for FY2024 and FY2025.
Members will consider increasing the homestead property tax credit from $425 to $500 per parcel for assessment years beginning January 1, 2024. During the 2023 regular session, legislators boosted the credit from $375 to $425 per parcel.
Legislators will take up a measure to transfer $290 million to the Arkansas Reserve Fund Set-Aside in the Restricted Reserve Fund, effective July 2, 2024. According to the DFA, the current Arkansas Reserve Fund balance is $710.6 million, part of $2 billion overall in the Restricted Reserve Fund.
As always, our team will keep you informed of all the progress at the Arkansas State Capitol. If you have any questions, please don’t hesitate to contact us.