Stricken language would be deleted from and underlined language would be added to present law.
Act 1 of the Third Extraordinary Session
1 .State of Arkansas Call Item 1
2 93rd General Assembly A Bill
3 Third Extraordinary Session, 2022 HOUSE BILL 1002
4
5 By: Representatives Jett, Shepherd, Jean, Richmond, M. Berry, Boyd, Bryant, Cloud, Haak, Rye, B.
6 Smith, Evans, M. Gray, Vaught, Warren, Ray, Wooten, Milligan, Cozart, Crawford, Eaves, Hillman, C.
7 Cooper, Brown, Bragg, L. Fite, McClure, Dotson, Wing, Coleman, Pilkington, Hollowell, Maddox, Slape,
8 Lundstrum, Brooks, Underwood, McGrew, Beaty Jr., Bentley, Speaks, Lowery, Lynch, Dalby, Watson, S.
9 Smith, Breaux, Payton, J. Mayberry, S. Berry, McCollum, Tosh
10 By: Senators J. Dismang, Beckham, Bledsoe, Caldwell, J. English, Flippo, Fulfer, Gilmore, B. Johnson,
11 M. Johnson, K. Hammer, Hester, Hickey, Hill, Irvin, M. Pitsch, Rapert, Rice, B. Sample, G. Stubblefield,
12 J. Sturch, D. Sullivan, D. Wallace
13
14 For An Act To Be Entitled
15 AN ACT TO REDUCE ARKANSAS INCOME TAXES; TO ACCELERATE
16 FUTURE REDUCTIONS IN ARKANSAS INCOME TAXES; TO ADOPT
17 FEDERAL LAW REGARDING DEPRECIATION AND EXPENSING OF
18 PROPERTY; TO CREATE AN INFLATIONARY RELIEF INCOME-TAX
19 CREDIT FOR CERTAIN TAXPAYERS; TO DECLARE AN
20 EMERGENCY; AND FOR OTHER PURPOSES.
21
22
23 Subtitle
24 TO REDUCE ARKANSAS INCOME TAXES; TO ADOPT
25 FEDERAL LAW ON DEPRECIATION AND EXPENSING
26 OF PROPERTY; TO CREATE AN INCOME-TAX
27 CREDIT FOR CERTAIN TAXPAYERS; AND TO
28 DECLARE AN EMERGENCY.
29
30
31 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
32
33 SECTION 1. Arkansas Code 26-51-201(a), as amended by Act 2 of 2021,
34 Second Extraordinary Session, concerning the rate of tax levied on the income
35 of individuals, trusts, and estates, is amended to read as follows:
36 (a) A tax is imposed upon the entire income of every resident,
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1 individual, trust, or estate. The tax shall be levied, collected, and paid
2 annually upon the entire net income as defined and computed in this chapter
3 at the following rates, giving effect to the tax credits provided hereafter,
4 in the manner set forth:
5 (1)(A) On and after January 1, 2022, every Every resident,
6 individual, trust, or estate having net income less than or equal to eighty-
7 four thousand five hundred dollars ($84,500) shall determine the amount of
8 income tax due under this subsection in accordance with the table set forth
9 below:
10 From Less Than or Equal To Rate
11 $0 $4,999 0%
12 $5,000 $9,999 2%
13 $10,000 $14,299 3%
14 $14,300 $23,599 3.4%
15 $23,600 $39,699 $84,500 5% 4.9%
16 $39,700 $84,500 5.5%
17
18 (B) On and after January 1, 2022, every Every resident,
19 individual, trust, or estate having net income greater than eighty-four
20 thousand five hundred dollars ($84,500) shall determine the amount of income
21 tax due under this subsection in accordance with the table set forth below:
22 From Less Than or Equal To Rate
23
24 $0 $4,300 2%
25 $4,301 $8,500 4%
26 $8,501 and above 5.5% 4.9%
27
28 (C) For tax years beginning on or after January 1, 2022,
29 every Every resident, individual, trust, or estate having net income greater
30 than or equal to eighty-four thousand five hundred one dollars ($84,501) but
31 not greater than ninety thousand six hundred dollars ($90,600) eighty-nine
32 thousand one hundred dollars ($89,100) shall reduce the amount of income tax
33 due as determined under subdivision (a)(1)(B) of this section by deducting a
34 bracket adjustment amount in accordance with the table set forth below:
35 From Less Than or Equal To Bracket
36 Adjustment
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1 Amount
2
3 $84,501 $84,600 $610 $460
4 $84,601 $84,700 $600 $450
5 $84,701 $84,800 $590 $440
6 $84,801 $84,900 $580 $430
7 $84,901 $85,000 $570 $420
8 $85,001 $85,100 $560 $410
9 $85,101 $85,200 $550 $400
10 $85,201 $85,300 $540 $390
11 $85,301 $85,400 $530 $380
12 $85,401 $85,500 $520 $370
13 $85,501 $85,600 $510 $360
14 $85,601 $85,700 $500 $350
15 $85,701 $85,800 $490 $340
16 $85,801 $85,900 $480 $330
17 $85,901 $86,000 $470 $320
18 $86,001 $86,100 $460 $310
19 $86,101 $86,200 $450 $300
20 $86,201 $86,300 $440 $290
21 $86,301 $86,400 $430 $280
22 $86,401 $86,500 $420 $270
23 $86,501 $86,600 $410 $260
24 $86,601 $86,700 $400 $250
25 $86,701 $86,800 $390 $240
26 $86,801 $86,900 $380 $230
27 $86,901 $87,000 $370 $220
28 $87,001 $87,100 $360 $210
29 $87,101 $87,200 $350 $200
30 $87,201 $87,300 $340 $190
31 $87,301 $87,400 $330 $180
32 $87,401 $87,500 $320 $170
33 $87,501 $87,600 $310 $160
34 $87,601 $87,700 $300 $150
35 $87,701 $87,800 $290 $140
36 $87,801 $87,900 $280 $130
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1 $87,901 $88,000 $270 $120
2 $88,001 $88,100 $260 $110
3 $88,101 $88,200 $250 $100
4 $88,201 $88,300 $240 $90
5 $88,301 $88,400 $230 $80
6 $88,401 $88,500 $220 $70
7 $88,501 $88,600 $210 $60
8 $88,601 $88,700 $200 $50
9 $88,701 $88,800 $190 $40
10 $88,801 $88,900 $180 $30
11 $88,901 $89,000 $170 $20
12 $89,001 $89,100 $160 $10
13 $89,101 and up $150 $0
14 $89,201 $89,300 $140
15 $89,301 $89,400 $130
16 $89,401 $89,500 $120
17 $89,501 $89,600 $110
18 $89,601 $89,700 $100
19 $89,701 $89,800 $90
20 $89,801 $89,900 $80
21 $89,901 $90,000 $70
22 $90,001 $90,100 $60
23 $90,101 $90,200 $50
24 $90,201 $90,300 $40
25 $90,301 $90,400 $30
26 $90,401 $90,500 $20
27 $90,501 $90,600 $10
28 $90,601 and up $0
29
30 (2)(A) On and after January 1, 2023, every resident, individual,
31 trust, or estate having net income less than or equal to eighty-four thousand
32 five hundred dollars ($84,500) shall determine the amount of income tax due
33 under this subsection in accordance with the table set forth below:
34 From Less Than or Equal To Rate
35
36 $0 $4,999 0%
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1 $5,000 $9,999 2%
2 $10,000 $14,299 3%
3 $14,300 $23,599 3.4%
4 $23,600 $39,699 5%
5 $39,700 $84,500 5.3%
6
7 (B) On and after January 1, 2023, every resident,
8 individual, trust, or estate having net income greater than eighty-four
9 thousand five hundred dollars ($84,500) shall determine the amount of income
10 tax due under this subsection in accordance with the table set forth below:
11 From Less Than or Equal To Rate
12
13 $0 $4,300 2%
14 $4,301 $8,500 4%
15 $8,501 and above 5.3%
16
17 (C) For tax years beginning on or after January 1, 2023,
18 every resident, individual, trust, or estate having net income greater than
19 or equal to eighty-four thousand five hundred one dollars ($84,501) but not
20 greater than ninety thousand dollars ($90,000) shall reduce the amount of
21 income tax due as determined under subdivision (a)(2)(B) of this section by
22 deducting a bracket adjustment amount in accordance with the table set forth
23 below:
24 From Less Than or Equal To Bracket
25 Adjustment
26 Amount
27
28 $84,501 $84,600 $548
29 $84,601 $84,700 $538
30 $84,701 $84,800 $528
31 $84,801 $84,900 $518
32 $84,901 $85,000 $508
33 $85,001 $85,100 $498
34 $85,101 $85,200 $488
35 $85,201 $85,300 $478
36 $85,301 $85,400 $468
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1 $85,401 $85,500 $458
2 $85,501 $85,600 $448
3 $85,601 $85,700 $438
4 $85,701 $85,800 $428
5 $85,801 $85,900 $418
6 $85,901 $86,000 $408
7 $86,001 $86,100 $398
8 $86,101 $86,200 $388
9 $86,201 $86,300 $378
10 $86,301 $86,400 $368
11 $86,401 $86,500 $358
12 $86,501 $86,600 $348
13 $86,601 $86,700 $338
14 $86,701 $86,800 $328
15 $86,801 $86,900 $318
16 $86,901 $87,000 $308
17 $87,001 $87,100 $298
18 $87,101 $87,200 $288
19 $87,201 $87,300 $278
20 $87,301 $87,400 $268
21 $87,401 $87,500 $258
22 $87,501 $87,600 $248
23 $87,601 $87,700 $238
24 $87,701 $87,800 $228
25 $87,801 $87,900 $218
26 $87,901 $88,000 $208
27 $88,001 $88,100 $198
28 $88,101 $88,200 $188
29 $88,201 $88,300 $178
30 $88,301 $88,400 $168
31 $88,401 $88,500 $158
32 $88,501 $88,600 $148
33 $88,601 $88,700 $138
34 $88,701 $88,800 $128
35 $88,801 $88,900 $118
36 $88,901 $89,000 $108
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1 $89,001 $89,100 $98
2 $89,101 $89,200 $88
3 $89,201 $89,300 $78
4 $89,301 $89,400 $68
5 $89,401 $89,500 $58
6 $89,501 $89,600 $48
7 $89,601 $89,700 $38
8 $89,701 $89,800 $28
9 $89,801 $89,900 $18
10 $89,901 $90,000 $8
11 $90,001 and up $0
12
13 (3)(A) On and after January 1, 2024, every resident, individual,
14 trust, or estate having net income less than or equal to eighty-four thousand
15 five hundred dollars ($84,500) shall determine the amount of income tax due
16 under this subsection in accordance with the table set forth below:
17 From Less Than or Equal To Rate
18
19 $0 $4,999 0%
20 $5,000 $9,999 2%
21 $10,000 $14,299 3%
22 $14,300 $23,599 3.4%
23 $23,600 $39,699 5%
24 $39,700 $84,500 5.1%
25
26 (B) On and after January 1, 2024, every resident,
27 individual, trust, or estate having net income greater than eighty-four
28 thousand five hundred dollars ($84,500) shall determine the amount of income
29 tax due under this subsection in accordance with the table set forth below:
30 From Less Than or Equal To Rate
31
32 $0 $4,300 2%
33 $4,301 $8,500 4%
34 $8,501 and above 5.1%
35
36 (C) For tax years beginning on or after January 1, 2024,
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1 every resident, individual, trust, or estate having net income greater than
2 or equal to eighty-four thousand five hundred one dollars ($84,501) but not
3 greater than eighty-nine thousand four hundred dollars ($89,400) shall reduce
4 the amount of income tax due as determined under subdivision (a)(3)(B) of
5 this section by deducting a bracket adjustment amount in accordance with the
6 table set forth below:
7 From Less Than or Equal To Bracket
8 Adjustment
9 Amount
10
11 $84,501 $84,600 $485
12 $84,601 $84,700 $475
13 $84,701 $84,800 $465
14