HB1152
To Create An Income Tax Exemption For Teachers.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1152 proposes an amendment to Arkansas income tax laws to provide a specific tax exemption for K-12 teachers. Under this bill, teachers employed by public schools or open-enrollment charter schools who spend more than 70% of their contracted time in student instruction would be exempt from state income tax on their first $50,000 of wages. The bill defines qualifying teachers as those in roles requiring specific state licensure. The exemption would apply to tax years beginning on or after January 1, 2023. The primary purpose is to offer a financial incentive for educators through targeted tax relief.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individuals employed as K-12 teachers in Arkansas public or open-enrollment charter schools who meet the 70% instructional time requirement. These individuals would see an increase in their take-home pay due to the reduction in their state income tax liability.
Who Might Suffer?
The state government of Arkansas would be negatively impacted by a reduction in annual tax revenue, which could necessitate budget adjustments or cuts to other public programs. Additionally, taxpayers who are not teachers would not receive this specific benefit, potentially creating a disparity in the tax burden across different professions.
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