SB313

Senate Bill 313 amends the Arkansas Income Tax Act of 1929 regarding exemptions for retirement and disability benefits. The bill allows taxpayers who receive military retirement or survivor benefits to receive the full benefit of the state's income tax exemption for retirement income. Specifically, if a taxpayer receives less than $6,000 in military retirement or survivor benefits, they may claim an additional exemption under subsection (a) for other retirement benefits, up to the difference between their military exemption and the $6,000 threshold. Previously, taxpayers were generally restricted to claiming either the military exemption or the general retirement exemption, but not both. This change applies to tax years beginning on or after January 1, 2023.