This bill proposes a reduction in the statewide sales tax rate by one-eighth percent to alleviate the surplus funds collected from Arkansas taxpayers. The General Assembly recognizes that Arkansas has the third highest combined state and local sales tax rate in the nation and attributes this to the state levying more sales tax than necessary to fund the Property Tax Relief Trust Fund, which has a growing balance. The bill aims to provide tax relief for all Arkansans.

To implement this reduction, the bill amends Arkansas Code 26-52-302(c)(1) and 26-53-107(c)(1) to change the additional excise tax rate from one-half percent (0.5%) to three-eighths percent (3/8%) on taxable sales of property and tangible personal property, respectively. The effective date for these changes will be the first day of the calendar quarter following the enactment of the bill.

Statutes affected:
Old version SB289 V2 - 2-27-2025 09:47 AM: 26-52-302(c), 26-53-107(c)
Old version SB289 Original - 2-24-2025 04:36 PM: 26-52-302(c), 26-53-107(c)
SB 289: 26-52-302(c), 26-53-107(c)