The 94th General Assembly in Arkansas concluded its regular session on May 1, 2023, achieving significant legislative milestones. Under new leadership with Governor Sanders, the session focused on transforming the education system, reforming criminal justice, and reducing taxes for a broad segment of the population.
Senator Jonathan Dismang introduced a notable tax bill, SB549, during a press conference with Governor Sanders. Now enacted as Act 532 of 2023, this legislation reduces the individual income tax rate in Arkansas from 4.9% to 4.7% and the corporate tax rate from 5.3% to 5.1%. This tax revision is expected to affect 1.1 million residents and result in a $150 million reduction in personal income taxes and $36 million less in corporate income taxes.
The session also saw changes in youth employment regulations. Representative Rebecca Burkes and Senator Clint Penzo sponsored HB1410, which later became Act 195 of 2023. This act eliminates the mandate for employers of minors to obtain an employment certificate from the Department of Labor and have their records reviewed by the Department of Education.
Furthermore, Representative Aaron Pilkington and Senator Clint Penzo proposed HB1669 to pause fee collection on new businesses in the state. Despite backing from the National Federation of Independent Business members, the bill was not addressed by the House Revenue and Taxation Committee.
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