Natural State News

LITTLE ROCK – Governor Sarah Huckabee Sanders has called for a special legislative session to address state income and corporate tax cuts. The announcement was met with approval from NFIB State Director Katie Burns, who emphasized the importance of considering small business owners during the upcoming discussions.

“NFIB-Arkansas members are grateful the Governor is working to uphold her commitment to responsibly phasing out our state’s income tax. The tax cuts from the regular session were just the first step of many. Once the income tax is fully eliminated, our state will be more competitive with neighboring states, and small businesses will be better positioned to create jobs, raise wages, and expand their operations. We look forward to working with lawmakers to ensure small businesses can continue to thrive,” said Burns.

Earlier this year, NFIB Arkansas supported significant tax relief measures passed by the 94th General Assembly's Regular Session. These reforms, which took effect on January 1, 2023, reduced individual top rates from 4.9% to 4.7%, and lowered corporate rates from 5.3% to 5.1%.

During a press conference today, Governor Sanders expressed her support for legislation aimed at further reducing taxes—$250 million in personal income taxes and $58 million in corporate taxes—bringing top rates down to 4.4% and 4.8%, respectively. Additionally, she proposed establishing a $710 million reserve fund intended for gradually eliminating state income tax altogether. A one-time retroactive tax credit of $150 would also be provided for individuals earning less than $90,000 annually.