The bill aims to prohibit local governments in Arkansas from enacting an income tax. It repeals existing provisions that allowed cities of the first class to levy income taxes on individual residents, as well as provisions that permitted local governments to impose taxes on the income of individuals and corporations within their boundaries. Specifically, the bill deletes Arkansas Code 14-43-607 and 26-73-104, which previously outlined the conditions under which local income taxes could be levied.

Additionally, the bill amends Arkansas Code 26-73-103 to clarify that no local government shall levy a tax on income, reinforcing the prohibition against local income taxes. The new language specifies that any tax ordinance must be adopted at a special or general election by the qualified electors of the affected area, but it explicitly states that income taxes are not permitted. This legislative change aims to standardize tax policy across the state and prevent local governments from imposing income taxes on their residents.

Statutes affected:
Old version HB1026 Original - 12-5-2022 02:59 PM: 26-73-103(a)
Old version HB1026 V2 - 1-30-2023 09:42 AM: 14-43-607, 01-30-2023, 26-73-103(a)
Old version HB1026 V3 - 2-6-2023 09:57 AM: 14-43-607, 02-06-2023, 26-73-103(a)
HB 1026: 14-43-607, 02-06-2023, 26-73-103(a)
Act 96: 14-43-607, 02-06-2023, 26-73-103(a)