HB1190
To Create An Income Tax Exemption For Teachers.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1190 proposes an amendment to Arkansas income tax laws to provide a specific exemption for K-12 teachers. The bill defines a 'teacher' as an individual employed by a public school or open-enrollment charter school who spends more than 70% of their contracted time in student instruction and holds a required license. Under this legislation, the first $50,000 of wages earned by a qualifying teacher would be exempt from state individual income tax. The exemption is intended to apply to tax years beginning on or after January 1, 2025. The bill aims to provide financial relief to educators within the K-12 system.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are licensed K-12 teachers working in public schools or open-enrollment charter schools, who would see a reduction in their state income tax liability. This financial incentive could also indirectly benefit public school districts by serving as a recruitment and retention tool to attract and maintain qualified teaching staff.
Who Might Suffer?
The primary entity negatively impacted would be the State of Arkansas, which would experience a reduction in state income tax revenue. This decrease in tax collections could necessitate budget adjustments, potential cuts to other state-funded programs, or the need to find alternative revenue sources to maintain current levels of state services.
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