The bill amends the income tax exemption for retirement and disability benefits in Arkansas, specifically addressing taxpayers receiving military retirement or survivor benefits. It modifies Arkansas Code 26-51-307(f) to allow these taxpayers to receive the full amount of the income tax exemption for retirement benefits. The new language specifies that if a taxpayer claims an exemption of less than $6,000 for military retirement or survivor benefits, they can claim additional retirement benefits under a different subsection, up to the difference between the exemption claimed and $6,000.

Additionally, the bill establishes an effective date for these changes, stating that they will apply to tax years beginning on or after January 1, 2023. This amendment aims to provide greater tax relief for military retirees and survivors, ensuring they can benefit fully from the retirement income tax exemption.

Statutes affected:
SB 313: 26-51-307(f)
Act 358: 26-51-307(f)