Arkansas lawmakers begin meeting today on cutting top income tax rate

FILE — The state Capitol is shown in this undated file photo.
FILE — The state Capitol is shown in this undated file photo.

Arkansas lawmakers are set to convene in the year's second special session this morning, with the largest tax cut in the state's history on the agenda.

On Friday, Republican Gov. Asa Hutchinson issued a proclamation calling for an extraordinary session to lower the top tax rate for individuals from 5.9% to 4.9% over the next four years and to address several other issues, which the governor has described as primarily cleanup matters and technical corrections.

Once lawmakers finish the business set out in the governor's call, the session can be extended for up to 15 days to consider bills not in the call with a two-thirds vote of the 100-member House of Representatives and the 35-member Senate.

While several legislators have said they plan to push for the session to be extended so that legislators may consider matters including bills on abortion and critical race theory, leadership in the House and Senate have filed proposed resolutions calling for the General Assembly to adjourn once it has completed the business set forth in Hutchinson's proclamation.

As of Monday evening, several bills addressing matters listed in the governor's call had been filed. They include:

• Senate Bill 1 by Sen. Jonathan Dismang, R-Searcy, and House Bill 1001 by John Maddox, R-Mena, are the state income tax plan referenced in the governor's proclamation.

• Senate Bill 2 by Dismang corrects language in state law on appointments to the Independent Tax Appeals Commission.

• Senate Bill 3 by Dismang creates an appropriation for American Rescue Plan Act funds.

• Senate Bill 4 by Dismang and House Bill 1004 by Rep. Carol Dalby, R-Texarkana, would clarify the applicability of the Uniform Limited Liability Company Act.

• Senate Bill 5 by Senate President Pro Tempore Jimmy Hickey, R-Texarkana, and House Speaker Matthew Shepherd, R-El Dorado, would transfer unspent general revenue funds to the restricted reserve account.

• Senate Bill 6 by Sen. Bill Sample, R-Hot Springs, and Rep. Keith Slape, R-Compton, would allow the House and Senate to employ security personnel.

• Senate Bill 7 by Sen. Dan Sullivan, R-Jonesboro, and House Bill 1005 by Rep. John Payton, R-Wilburn, would repeal Act 1104 of 2021. The act changed laws related to insulin rebates but was determined to have unintended consequences, Hutchinson said.

The state House and Senate are scheduled to convene at 10 a.m. The Joint Budget Committee is scheduled to meet upon the adjournment of both chambers, and committee meetings are scheduled for the afternoon.

For a full schedule of today's meetings, visit arkleg.state.ar.us.

Information for this article was contributed by Michael R. Wickline of the Arkansas Democrat-Gazette.


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