This bill amends the Arkansas state income tax laws to exempt certain gains from gross income. Specifically, it introduces a new provision that allows taxpayers to exclude gains resulting from the acquisition of real property by entities with the power of eminent domain, either under the right of eminent domain or the threat of condemnation. This addition is codified as a new subdivision under Arkansas Code 26-51-404(b).

The effective date for this exemption is set for tax years beginning on or after January 1, 2025. This change aims to provide financial relief to taxpayers who may be affected by property acquisitions under eminent domain, ensuring that such gains are not subject to state income tax.

Statutes affected:
Old version SB204 V2 - 3-12-2025 10:16 AM: 26-51-404(b)
Old version SB204 Original - 2-6-2025 09:08 AM: 26-51-404(b)
SB 204: 26-51-404(b)