The bill proposes an amendment to the Arkansas state income tax laws, specifically targeting the treatment of gains realized by taxpayers from property acquisitions under the right of eminent domain or the threat of condemnation. It introduces a new exclusion from gross income, stating that any gain resulting from such acquisitions will not be subject to taxation. This change is intended to provide financial relief to property owners who may be compelled to sell their property under these circumstances.

The amendment specifically adds a new subdivision to Arkansas Code 26-51-404(b), which outlines exclusions from gross income, and it will take effect for tax years beginning on or after January 1, 2025. This legislative change aims to clarify the tax implications for individuals affected by eminent domain actions, ensuring that they are not penalized financially for gains realized in these situations.

Statutes affected:
SB 204: 26-51-404(b)