(The Center Square) – Arkansas Gov. Sarah Huckabee Sanders is calling lawmakers back to Little Rock next week to consider an income tax cut.
The governor is recommending an income tax cut from 4.4% to 3.9% and the corporate tax rate from 4.8% to 4.3%., effective Jan. 1, 2024.
The homestead exemption would increase from $425 to $500 if passed by the Arkansas State Legislature.
The cuts would save taxpayers $500 million in income taxes and $50 million in property taxes, Sanders said in a post on X.
The Legislature will also consider the budget for the Arkansas Game and Fish Commission. Lawmakers could not agree on the commission’s $175 million allocation during the legislative session. The money does not come from state coffers, but the commission needs the Legislature to approve its spending authority.
The special session will begin June 17 at noon, according to Sanders’ order.