(The Center Square) – Arkansas Gov. Sarah Huckabee Sanders signed tax cuts Tuesday that she called “pro-growth, pro-business, pro-family.”
“Half a billion dollars is how much money we just put back into the pockets of the people of Arkansas,” Sanders said. “That’s a great day for our state.”
The state income tax is dropping from 4.4% to 3.9% and the corporate tax rate from 4.8% to 4.3%, effective Jan. 1, 2024.
The homestead exemption is increasing from $425 to $500.
The tax cuts affect 1.1 million Arkansans who make more than $25,000 a year, according to Sanders.
“Anybody making less than $25,000 is already paying a lower rate, 3.4%,” Sanders said.
Some Democrats in the House and Senate opposed the tax cuts. Rep. Denise Garner, D-Fayetteville, said during the debate that the state has “the highest maternal mortality rate in the nation, second highest for teen pregnancy, third highest in infant mortality.”
“Now is not the time to be underfunding the programs that deal with these problems,” Garner said.
Lawmakers also passed appropriations for the Game and Fish Commission. The bill sets the executive director’s maximum salary at $170,000.
“If there is an increase above the amount that was paid on June 17, 2024 to the Game and Fish Commissioner that exceeds 5%, then that would have required prior approval by the legislative council or joint budget or by whoever is meeting at the time,” said Jonathan Dismang, R-Bebee, the sponsor of the bill said during his presentation.
The director’s current salary is $152,637. A 5% increase would be $158,742. The 5% cap applies only to fiscal year 2025, which ends June 20, 2025.