Gov. Asa Hutchinson said Monday he plans on asking the Legislature to increase a tax credit given to Arkansas homeowners by $25 when lawmakers meet again in 2019.
The state’s homestead tax credit, which currently sits at $350, should be raised to $375, Hutchinson said, because the state government has more than $78 million in the account to used to pay counties back for the credit, which comes off residents’ property tax bill.
Raising the exemption will cost about $18 million a year from that account, Hutchinson said, but will have no other effect on the state budget. The account is replenished through a half-cent sales tax.
About 716,000 parcels in the state receive the homestead credit, according to Chris Villines, the executive director of the Arkansas Association of Counties.
The last time the homestead tax credit was increased was in 2007, under Hutchinson’s predecessor, Democratic Gov. Mike Beebe. At that time, it was raised from $300 to $350.
Read Tuesday's Arkansas Democrat-Gazette for full details.