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Bi-partisan Sponsorship
Taxes & Budget

SB549

To Reduce The Income Tax Rates Applicable To Individuals, Trusts, Estates, And Corporations.

Passed

Last Action (April 10, 2023): Notification that SB549 is now Act 532

Sponsors

AI-Generated Summary

Senate Bill 549 amends Arkansas income tax laws to reduce tax rates for individuals, trusts, estates, and corporations, effective for tax years beginning on or after January 1, 2023. For individuals, trusts, and estates, the bill establishes revised tax brackets and rates, including a structure for bracket adjustments for net incomes between $87,001 and $91,300. It mandates that these tax tables be adjusted annually based on cost-of-living increases. Additionally, the bill reduces the corporate income tax rate for both domestic and foreign corporations on net income exceeding $25,000 from 5.3% to 5.1%. The overall purpose is to lower the tax burden on these entities by modifying the state income tax schedules and corporate tax calculations.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are individual taxpayers, trusts, estates, and both domestic and foreign corporations operating in Arkansas. By lowering the income tax rates and adjusting tax brackets, these entities will generally experience a reduction in their annual state income tax liability, allowing them to retain a larger portion of their net income.

Who Might Suffer?

The primary entity negatively impacted by this legislation is the State of Arkansas government itself, specifically in terms of reduced tax revenue. By lowering income tax rates, the state will collect less tax revenue, which may necessitate budget cuts, reductions in public services, or a reliance on alternative funding sources to maintain government operations and state-funded programs.

Vote Records

Third Reading

April 5, 2023
Yea: 85 Nay: 12 NV: 3 Absent: 0 Passed
View individual votes (100)
Legislator Party Chamber Vote
Fred Allen Democrat House NV
Lane Jean Republican House Yea
Stephen Meeks Republican House Yea
Mark Perry Democrat House Nay
Jon Eubanks Republican House Yea
Matthew Shepherd Republican House Yea
Jeff Wardlaw Republican House Yea
Bruce Cozart Republican House Yea
David Whitaker Democrat House Nay
Deborah Ferguson Democrat House Yea
Charlene Fite Republican House Yea
Mike Holcomb Republican House Yea
Stephen Magie Democrat House Yea
Mark McElroy Republican House Yea
Josh Miller Republican House Yea
Richard Womack Republican House Yea
Jack Ladyman Republican House Yea
Robin Lundstrum Republican House Yea
Dwight Tosh Republican House Yea
Lanny Fite Republican House Yea
Grant Hodges Republican House Yea
Rick Beck Republican House Yea
Mary Bentley Republican House Yea
Les Eaves Republican House Yea
Justin Gonzales Republican House Yea
Julie Mayberry Republican House Yea
Ken Ferguson Democrat House NV
Ron Mcnair Republican House Yea
Milton Nicks Democrat House Nay
Marcus Richmond Republican House Yea
Vivian Flowers Democrat House Nay
Deann Vaught Republican House Yea
Karilyn Brown Republican House Yea
Sonia Eubanks Barker Republican House Yea
Frances Cavenaugh Republican House Yea
Jack Fortner Republican House Yea
Jimmie Gazaway Republican House Yea
Roger Lynch Republican House Yea
John Maddox Republican House Yea
Aaron Pilkington Republican House Yea
Johnny Rye Republican House Yea
Les Warren Republican House Yea
Danny Watson Republican House Yea
Carlton Wing Republican House Yea
Austin Mccollum Republican House Yea
Carol Dalby Republican House Yea
Steve Hollowell Republican House Yea
Brian Evans Republican House Yea
Lee Johnson Republican House Yea
Andrew Collins Democrat House Nay
Stan Berry Republican House Yea
Harlan Breaux Republican House Yea
Cameron Cooper Republican House Yea
Nicole Clowney Democrat House Nay
Cindy Crawford Republican House NV
Denise Garner Democrat House Nay
Tippi McCullough Democrat House Nay
Jay Richardson Democrat House Yea
Jamie Scott Democrat House Nay
Jim Wooten Republican House Yea
Denise Ennett Democrat House Nay
Richard McGrew Republican House Yea
Joy Springer Democrat House Nay
Howard Beaty Republican House Yea
Tony Furman Republican House Yea
Kendon Underwood Republican House Yea
David Ray Republican House Yea
Mark Berry Republican House Yea
John Carr Republican House Yea
Rick McClure Republican House Yea
Keith Brooks Republican House Yea
Delia Haak Republican House Yea
Ashley Hudson Democrat House Yea
Jon Milligan Republican House Yea
RJ Hawk Republican House Yea
Wade Andrews Republican House Yea
Rebecca Burkes Republican House Yea
DeAnna Hodges Republican House Yea
Hope Duke Republican House Yea
Zack Gramlich Republican House Yea
Mindy McAlindon Republican House Yea
Matt Duffield Republican House Yea
Stetson Painter Republican House Yea
Steve Unger Republican House Yea
Wayne Long Republican House Yea
Scott Richardson Republican House Yea
Brandon Achor Republican House Yea
Jeremiah Moore Republican House Yea
Joey Carr Republican House Yea
Matt Brown Republican House Yea
Shad Pearce Republican House Yea
Chad Puryear Republican House Yea
Ryan Rose Republican House Yea
Bart Schulz Republican House Yea
Trey Steimel Republican House Yea
Tara Shephard Democrat House Nay
Jeremy Wooldridge Republican House Yea
Kendra Moore Republican House Yea
Brit McKenzie Republican House Yea
Steven Walker Republican House Yea

Third Reading

April 3, 2023
Yea: 30 Nay: 0 NV: 5 Absent: 0 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Linda Chesterfield Democrat Senate NV
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate NV
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Yea
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate NV
Frederick Love Democrat Senate Yea
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate NV
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate NV
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Yea
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us