Governor Asa Hutchinson today continued his promise of lowering taxes for Arkansans after he signed two bills into law bringing the state income tax to a historic low and creating a School Safety Grant program.
“This tax relief package that has just been enacted takes over $400 million from the state coffers and puts it in individual Arkansan’s pockets,” Governor Hutchinson said. “That is a transfer of wealth from the government to the taxpayer, and it could not come at a more important time.
The Arkansas income tax was instituted in 1929 at a rate of 5.0%. When the Governor was elected in 2014, the income tax rate was at 7.0%, the highest in state history. Today, with the signing of the most recent tax cuts, the state income tax will be lowered to 4.9%, the lowest in Arkansas history.
This tax cut bill comes just eight months after the largest income tax cut in state history in December 2021.
“In less than 8 years, we have taken the income tax rate from the highest it has ever been to the lowest it has ever been, while also growing our state reserves from $0 to $2 billion,” Governor Hutchinson said. “We have accomplished this through a smarter, leaner, and more efficient state government.”
The bill also includes additional financial relief for low- and middle-income taxpayers with a $150 nonrefundable tax credit.
The second bill signed into law came from a recommendation by the School Safety Commission, which was to provide $50 million for a School Safety Grant program. This program will allow schools to apply for funding to help keep their students safe.
“When parents drop their children off at school, they want to have confidence their children are going to be safe,” Governor Hutchinson said. “This $50 million grant program for local school districts will allow schools to implement some of the one-time recommendations that come out of the School Safety Commission.”
You can watch the full bill signing HERE.