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Governor Asa Hutchinson issued a call Friday for the Third Extraordinary Session of the 93rd General Assembly. The purpose of the Session is to provide immediate tax relief for Arkansans and set aside $50 million for a school safety grant program.
“As inflation rises and the cost of living increases, Arkansans need more money in their pockets,” Governor Hutchinson said. “With a record surplus in the last year fiscal year, we have the ability to provide financial relief and ensure our children can be protected in their schools.”
Governor Hutchinson’s call consists of the following items:
- Lower the top individual tax rate to 4.9%, retroactive to January 1, 2022, saving taxpayers $295 million in 2022;
- Lower the corporate income tax rate to 5.3%, beginning January 1, 2023;
- Create a $150 nonrefundable low- and middle-income tax credit, saving taxpayers $156.3 million in 2022;
- Align Arkansas law with the federal depreciation schedule;
- Transfer $50 million from the state surplus for the purpose of a school safety grant program, consistent with the recommendations of the Arkansas School Safety Commission.
The above tax provisions will provide financial relief for Arkansans of all income levels. The alignment of Arkansas law with the federal depreciation schedule will also provide relief for business owners by accelerating the depreciation of their assets and allow for an easier calculation of their tax bill.
The $50 million for a school safety grant program comes after the Arkansas School Safety Commission presented their interim report to Governor Hutchinson on August 2nd. This program will provide funding for school districts to increase security measures on their campuses.