HB1026

House Bill 1026 seeks to prohibit all local governments in Arkansas, including cities and counties, from levying an income tax. The bill achieves this by repealing existing Arkansas Code sections that previously authorized cities to impose taxes on the income of residents and non-residents working within the city. Additionally, the bill amends broader tax-related statutes to explicitly state that local governments shall not levy a tax on income. This legislation effectively removes the legal framework that allowed for local income tax implementation. By doing so, it mandates that income taxation remains a power reserved exclusively for the state level.