HB1001
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 HB1001 is now Act 4
Sponsors
AI-Generated Summary
House Bill 1001 proposes revisions to Arkansas's state income tax structure for individuals, trusts, estates, and both domestic and foreign corporations, effective for tax years beginning on or after January 1, 2024. The bill lowers specific income tax rates, adjusts the tax bracket thresholds for individuals, and reduces the top corporate income tax rate from 4.8% to 4.3%. Additionally, the bill mandates a $290 million transfer from the General Revenue Allotment Reserve Fund to the Arkansas Reserve Fund Set-Aside. An emergency clause is included to expedite the implementation of these changes to assist taxpayers and state agencies with fiscal planning and administrative adjustments. The primary objective of the legislation is to provide broad-based income tax relief while allocating surplus state funds to designated reserves.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individual taxpayers, trusts, estates, and corporations operating within Arkansas. By lowering tax rates and adjusting income brackets upward, the legislation is designed to reduce the overall tax liability for these entities, effectively increasing their disposable income or retained earnings. Corporations, in particular, benefit from a reduction in the top tax rate, which may improve their competitive position within the state.
Who Might Suffer?
The bill does not explicitly list groups that are negatively impacted; however, the reduction in tax revenue could potentially impact the state's budget capacity for public programs and services funded by general revenues. While the bill includes a transfer of $290 million to a reserve fund, stakeholders who rely on consistent or increased state spending in areas such as public infrastructure, education, or social services might be concerned that lower tax revenues could lead to reduced funding availability for these government programs in the future.
Vote Records
Third Reading
June 19, 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 | Absent |
| 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 |
Third Reading
June 18, 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 | NV |
| 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 | 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 | 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 |
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