HB1116
To Create An Income Tax Credit For Taxpayers Sixty-five (65) And Older In An Amount Equal To The Taxpayer's Property Tax Payment On A Homestead.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1116 proposes an amendment to Arkansas state income tax law to create a refundable tax credit for taxpayers aged 65 and older. The amount of the credit is equivalent to the real property taxes paid by the individual on their homestead during the previous calendar year, excluding any penalties or payments for past-due taxes. If the calculated tax credit exceeds the taxpayer's total income tax liability, the state will refund the difference to the taxpayer. The legislation is intended to apply to tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas residents aged 65 and older who own and pay property taxes on their primary residence (homestead), as the bill provides a direct financial credit or refund equal to their annual property tax burden.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, specifically the state's general revenue fund, which would experience a reduction in tax collections and an increase in tax refund outlays. Additionally, taxpayers who do not meet the age requirement or who rent their homes do not receive the benefits provided by this tax policy.
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