The bill aims to amend Arkansas income tax laws by reducing tax rates for individuals, trusts, estates, and corporations, effective for tax years beginning on or after January 1, 2024. It introduces a new income tax structure for residents with net incomes up to $87,000, establishing a tiered tax rate system ranging from 0% to 4.4%. For those with incomes exceeding $87,000, a different tiered structure applies, with rates starting at 2% and going up to 4.4%. Additionally, the bill includes provisions for a bracket adjustment for individuals earning between $87,001 and $90,800, allowing for a reduction in tax based on specific income thresholds.

Furthermore, the bill establishes an inflationary relief income tax credit for certain taxpayers, which is available for the tax year beginning January 1, 2023. This credit is tiered based on income levels, providing varying amounts of relief for individual and joint filers with net incomes up to $103,600 and $207,200, respectively. The bill also includes provisions for corporations, both domestic and foreign, detailing their respective tax obligations based on net income. An emergency clause is included, allowing the act to take effect immediately upon approval to ensure timely implementation and compliance by taxpayers and the Department of Finance and Administration.

Statutes affected:
Old version SB8 Original - 9-11-2023 07:59 AM: 26-51-201(a), 26-51-205(a), 26-51-205(b)
Old version SB8 V2 - 9-11-2023 03:25 PM: 26-51-201(a), 26-51-205(a), 26-51-205(b)
SB 8: 26-51-201(a), 26-51-205(a), 26-51-205(b)
Act 6: 26-51-201(a), 26-51-205(a), 26-51-205(b)
Act 10: 26-51-201(a), 26-51-205(a), 26-51-205(b)