SB1
To Reduce The Income Tax Levied On Individuals, Trusts, Estates, And Corporations; To Transfer Surplus Funds To The Arkansas Reserve Fund Set-aside; And To Declare An Emergency.
Last Action (June 19, 2024): Notification that SB1 is now Act 1
Sponsors
AI-Generated Summary
Senate Bill 1 proposes a reduction in Arkansas income tax rates for individuals, trusts, estates, and corporations, effective for tax years beginning on or after January 1, 2024. The bill adjusts income tax brackets and lowers the top marginal tax rates for both individuals and corporate entities. Additionally, the legislation mandates a $290 million transfer of surplus funds from the General Revenue Allotment Reserve Fund to the Arkansas Reserve Fund Set-Aside. An emergency clause is included to expedite the enactment of these changes, citing the need for state financial stability and time for administrative implementation by the Department of Finance and Administration. The bill aims to provide tax relief while ensuring the state maintains necessary reserve funds.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individual taxpayers across various income levels, as well as domestic and foreign corporations operating in Arkansas. By reducing marginal income tax rates and adjusting tax brackets, these entities will see a decrease in their state income tax liabilities, potentially leading to increased disposable income for individuals and improved capital retention for businesses.
Who Might Suffer?
The state government and its public services may be negatively impacted in the long term, as the reduction in income tax rates results in lower tax revenue collection. This decrease in revenue could potentially lead to reduced funding for public programs, state agencies, and infrastructure projects, depending on the state's future budgetary decisions and the impact of the reserve fund transfers.
Vote Records
Third Reading
June 19, 2024View 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 | Yea |
| 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 | NV |
| 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 | NV |
| 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 | Yea |
| Denise Garner | Democrat | House | Nay |
| Tippi McCullough | Democrat | House | Nay |
| Jay Richardson | Democrat | House | Nay |
| 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 | NV |
| 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
June 18, 2024View individual votes (35)
| Legislator | Party | Chamber | Vote |
|---|---|---|---|
| Jane English | Republican | Senate | Absent |
| Linda Chesterfield | Democrat | Senate | Nay |
| Jonathan Dismang | Republican | Senate | Yea |
| Greg Leding | Democrat | Senate | Nay |
| Missy Irvin | Republican | Senate | Yea |
| Bryan King | Republican | Senate | Yea |
| Kim Hammer | Republican | Senate | Yea |
| Stephanie Flowers | Democrat | Senate | Absent |
| Frederick Love | Democrat | Senate | Nay |
| Terry Rice | Republican | Senate | Yea |
| Reginald Murdock | Democrat | Senate | Nay |
| 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 | Nay |
| 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 |
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