Arkansas lawmakers convene for tax cuts, Game and Fish appropriation
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The state Capitol in Little Rock. Photo: Al Drago/Bloomberg via Getty Images
The state's 94th General Assembly convened Monday for its second special session.
Why it matters: Lawmakers are working to approve a 2025 budget for the Arkansas Game and Fish Commission (AGFC), which they failed to do during the regular session, and to lower taxes on income and personal property at the request of Gov. Sarah Huckabee Sanders.
What happened: Most of the action Monday was to approve language and move the bills through various committees. Voting will take place later this week.
State of play: Senate Bill 1 proposes to lower Arkansas' top individual income tax rate from 4.4% to 3.9%, and the top corporate rate from 4.8% to 4.3%. The reductions would be retroactive to Jan. 1, 2024.
- If approved, the cuts will reduce the state's general revenue by $483.5 million in fiscal 2025 — which begins July 1 — and $322.2 million for each fiscal year after, according to a fiscal impact report.
Senate Bill 2 would appropriate more than $177 million to fund the annual operation of and pay salaries for the Game and Fish Commission.
- Lawmakers were unable to settle a disagreement over raising the maximum authorized salary for the AGFC director — from $152,638 to $190,000 a year — during the fiscal session in May.
- The new bill sets the salary at $170, 437.
Senate Bill 3 seeks to increase the homestead property tax credit from $425 to $500. It was raised from $375 during the 2023 legislative session.
Flashback: In a four-day special session called in September, lawmakers cut the top individual income tax rate from 4.7% to 4.4% and the top corporate rate from 5.1% to 4.8%, effective Jan. 1, 2024.
Meanwhile, Sanders late Friday authorized pay increases for state employees of the executive branch. She approved a one-time 3% increase effective June 23.
- Employees meeting expectations are also eligible for a 1% increase, while those exceeding expectations are eligible for a 3% raise.
What's next: The state Senate is set to reconvene at 9am and the state House at 10am today.