Natural State News

LITTLE ROCK (Sept. 15, 2023) – Governor Sarah Huckabee Sanders has signed into law a set of tax cuts following the conclusion of the First Special Session of the 94th General Assembly. This legislative move was praised by NFIB State Director Katie Burns as beneficial for small businesses in Arkansas.

Burns stated, "As indicated in a recent survey, many of our small business owners are struggling to fill open positions and keep up with rising costs. This tax relief, coupled with the $186 million in tax relief during the regular session, is a huge win for our job creators that will provide meaningful savings. With a lesser tax burden, small business owners will be able to raise wages, create jobs, and invest in their communities. We look forward to working with the Governor and the General Assembly to fully phase out our state income tax."

The special session began on September 11 and concluded on September 14 after debating several bills focused on providing tax relief to over 1.1 million residents of Arkansas. Key among these were HB1004 and SB8, which established a $710 million reserve fund for the state and reduced top tax rates for individuals and corporations. The new law decreases the top individual rate to 4.4% and lowers the corporate rate to 4.8%.

An NFIB survey recently highlighted that inflation is a pressing concern for 23 percent of small business owners, marking an increase from previous months.

During its Regular Session earlier this year, the 94th General Assembly passed $186 million in retroactive tax relief effective January 1, reducing individual top rates from 4.9% to 4.7%, while corporate rates decreased from 5.3% to 5.1%.