Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas Call Item 1
2 93rd General Assembly A Bill
3 Third Extraordinary Session, 2022 HOUSE BILL 1004
4
5 By: Representative Tollett
6
7 For An Act To Be Entitled
8 AN ACT TO REDUCE ARKANSAS INCOME TAXES; TO ACCELERATE
9 FUTURE REDUCTIONS IN ARKANSAS INCOME TAXES; TO ADOPT
10 FEDERAL LAW REGARDING DEPRECIATION AND EXPENSING OF
11 PROPERTY; TO CREATE AN INFLATIONARY RELIEF INCOME-TAX
12 CREDIT FOR CERTAIN TAXPAYERS; TO EXEMPT FROM INCOME
13 TAX THE FIRST SIXTY THOUSAND DOLLARS ($60,000) OF
14 INCOME FOR CERTAIN TAXPAYERS; TO DECLARE AN
15 EMERGENCY; AND FOR OTHER PURPOSES.
16
17
18 Subtitle
19 TO REDUCE ARKANSAS INCOME TAXES; TO ADOPT
20 FEDERAL LAW ON DEPRECIATION AND EXPENSING
21 OF PROPERTY; TO CREATE AN INCOME-TAX
22 CREDIT FOR CERTAIN TAXPAYERS; AND TO
23 DECLARE AN EMERGENCY.
24
25
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
27
28 SECTION 1. Arkansas Code 26-51-201(a), as amended by Act 2 of 2021,
29 Second Extraordinary Session, concerning the rate of tax levied on the income
30 of individuals, trusts, and estates, is amended to read as follows:
31 (a) A tax is imposed upon the entire income of every resident,
32 individual, trust, or estate. The tax shall be levied, collected, and paid
33 annually upon the entire net income as defined and computed in this chapter
34 at the following rates, giving effect to the tax credits provided hereafter,
35 in the manner set forth:
36 (1)(A) On and after January 1, 2022, every Every resident,
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1 individual, trust, or estate having net income less than or equal to eighty-
2 four thousand five hundred dollars ($84,500) shall determine the amount of
3 income tax due under this subsection in accordance with the table set forth
4 below:
5 From Less Than or Equal To Rate
6 $0 $4,999 0%
7 $5,000 $9,999 2%
8 $10,000 $14,299 3%
9 $14,300 $23,599 3.4%
10 $23,600 $39,699 $84,500 5% 4.9%
11 $39,700 $84,500 5.5%
12
13 (B) On and after January 1, 2022, every Every resident,
14 individual, trust, or estate having net income greater than eighty-four
15 thousand five hundred dollars ($84,500) shall determine the amount of income
16 tax due under this subsection in accordance with the table set forth below:
17 From Less Than or Equal To Rate
18
19 $0 $4,300 2%
20 $4,301 $8,500 4%
21 $8,501 and above 5.5% 4.9%
22
23 (C) For tax years beginning on or after January 1, 2022,
24 every Every resident, individual, trust, or estate having net income greater
25 than or equal to eighty-four thousand five hundred one dollars ($84,501) but
26 not greater than ninety thousand six hundred dollars ($90,600) eighty-nine
27 thousand one hundred dollars ($89,100) shall reduce the amount of income tax
28 due as determined under subdivision (a)(1)(B) of this section by deducting a
29 bracket adjustment amount in accordance with the table set forth below:
30 From Less Than or Equal To Bracket
31 Adjustment
32 Amount
33
34 $84,501 $84,600 $610 $460
35 $84,601 $84,700 $600 $450
36 $84,701 $84,800 $590 $440
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1 $84,801 $84,900 $580 $430
2 $84,901 $85,000 $570 $420
3 $85,001 $85,100 $560 $410
4 $85,101 $85,200 $550 $400
5 $85,201 $85,300 $540 $390
6 $85,301 $85,400 $530 $380
7 $85,401 $85,500 $520 $370
8 $85,501 $85,600 $510 $360
9 $85,601 $85,700 $500 $350
10 $85,701 $85,800 $490 $340
11 $85,801 $85,900 $480 $330
12 $85,901 $86,000 $470 $320
13 $86,001 $86,100 $460 $310
14 $86,101 $86,200 $450 $300
15 $86,201 $86,300 $440 $290
16 $86,301 $86,400 $430 $280
17 $86,401 $86,500 $420 $270
18 $86,501 $86,600 $410 $260
19 $86,601 $86,700 $400 $250
20 $86,701 $86,800 $390 $240
21 $86,801 $86,900 $380 $230
22 $86,901 $87,000 $370 $220
23 $87,001 $87,100 $360 $210
24 $87,101 $87,200 $350 $200
25 $87,201 $87,300 $340 $190
26 $87,301 $87,400 $330 $180
27 $87,401 $87,500 $320 $170
28 $87,501 $87,600 $310 $160
29 $87,601 $87,700 $300 $150
30 $87,701 $87,800 $290 $140
31 $87,801 $87,900 $280 $130
32 $87,901 $88,000 $270 $120
33 $88,001 $88,100 $260 $110
34 $88,101 $88,200 $250 $100
35 $88,201 $88,300 $240 $90
36 $88,301 $88,400 $230 $80
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1 $88,401 $88,500 $220 $70
2 $88,501 $88,600 $210 $60
3 $88,601 $88,700 $200 $50
4 $88,701 $88,800 $190 $40
5 $88,801 $88,900 $180 $30
6 $88,901 $89,000 $170 $20
7 $89,001 $89,100 $160 $10
8 $89,101 and up $150 $0
9 $89,201 $89,300 $140
10 $89,301 $89,400 $130
11 $89,401 $89,500 $120
12 $89,501 $89,600 $110
13 $89,601 $89,700 $100
14 $89,701 $89,800 $90
15 $89,801 $89,900 $80
16 $89,901 $90,000 $70
17 $90,001 $90,100 $60
18 $90,101 $90,200 $50
19 $90,201 $90,300 $40
20 $90,301 $90,400 $30
21 $90,401 $90,500 $20
22 $90,501 $90,600 $10
23 $90,601 and up $0
24
25 (2)(A) On and after January 1, 2023, every resident, individual,
26 trust, or estate having net income less than or equal to eighty-four thousand
27 five hundred dollars ($84,500) shall determine the amount of income tax due
28 under this subsection in accordance with the table set forth below:
29 From Less Than or Equal To Rate
30
31 $0 $4,999 0%
32 $5,000 $9,999 2%
33 $10,000 $14,299 3%
34 $14,300 $23,599 3.4%
35 $23,600 $39,699 5%
36 $39,700 $84,500 5.3%
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1
2 (B) On and after January 1, 2023, every resident,
3 individual, trust, or estate having net income greater than eighty-four
4 thousand five hundred dollars ($84,500) shall determine the amount of income
5 tax due under this subsection in accordance with the table set forth below:
6 From Less Than or Equal To Rate
7
8 $0 $4,300 2%
9 $4,301 $8,500 4%
10 $8,501 and above 5.3%
11
12 (C) For tax years beginning on or after January 1, 2023,
13 every resident, individual, trust, or estate having net income greater than
14 or equal to eighty-four thousand five hundred one dollars ($84,501) but not
15 greater than ninety thousand dollars ($90,000) shall reduce the amount of
16 income tax due as determined under subdivision (a)(2)(B) of this section by
17 deducting a bracket adjustment amount in accordance with the table set forth
18 below:
19 From Less Than or Equal To Bracket
20 Adjustment
21 Amount
22
23 $84,501 $84,600 $548
24 $84,601 $84,700 $538
25 $84,701 $84,800 $528
26 $84,801 $84,900 $518
27 $84,901 $85,000 $508
28 $85,001 $85,100 $498
29 $85,101 $85,200 $488
30 $85,201 $85,300 $478
31 $85,301 $85,400 $468
32 $85,401 $85,500 $458
33 $85,501 $85,600 $448
34 $85,601 $85,700 $438
35 $85,701 $85,800 $428
36 $85,801 $85,900 $418
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1 $85,901 $86,000 $408
2 $86,001 $86,100 $398
3 $86,101 $86,200 $388
4 $86,201 $86,300 $378
5 $86,301 $86,400 $368
6 $86,401 $86,500 $358
7 $86,501 $86,600 $348
8 $86,601 $86,700 $338
9 $86,701 $86,800 $328
10 $86,801 $86,900 $318
11 $86,901 $87,000 $308
12 $87,001 $87,100 $298
13 $87,101 $87,200 $288
14 $87,201 $87,300 $278
15 $87,301 $87,400 $268
16 $87,401 $87,500 $258
17 $87,501 $87,600 $248
18 $87,601 $87,700 $238
19 $87,701 $87,800 $228
20 $87,801 $87,900 $218
21 $87,901 $88,000 $208
22 $88,001 $88,100 $198
23 $88,101 $88,200 $188
24 $88,201 $88,300 $178
25 $88,301 $88,400 $168
26 $88,401 $88,500 $158
27 $88,501 $88,600 $148
28 $88,601 $88,700 $138
29 $88,701 $88,800 $128
30 $88,801 $88,900 $118
31 $88,901 $89,000 $108
32 $89,001 $89,100 $98
33 $89,101 $89,200 $88
34 $89,201 $89,300 $78
35 $89,301 $89,400 $68
36 $89,401 $89,500 $58
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1 $89,501 $89,600 $48
2 $89,601 $89,700 $38
3 $89,701 $89,800 $28
4 $89,801 $89,900 $18
5 $89,901 $90,000 $8
6 $90,001 and up $0
7
8 (3)(A) On and after January 1, 2024, every resident, individual,
9 trust, or estate having net income less than or equal to eighty-four thousand
10 five hundred dollars ($84,500) shall determine the amount of income tax due
11 under this subsection in accordance with the table set forth below:
12 From Less Than or Equal To Rate
13
14 $0 $4,999 0%
15 $5,000 $9,999 2%
16 $10,000 $14,299 3%
17 $14,300 $23,599 3.4%
18 $23,600 $39,699 5%
19 $39,700 $84,500 5.1%
20
21 (B) On and after January 1, 2024, every resident,
22 individual, trust, or estate having net income greater than eighty-four
23 thousand five hundred dollars ($84,500) shall determine the amount of income
24 tax due under this subsection in accordance with the table set forth below:
25 From Less Than or Equal To Rate
26
27 $0 $4,300 2%
28 $4,301 $8,500 4%
29 $8,501 and above 5.1%
30
31 (C) For tax years beginning on or after January 1, 2024,
32 every resident, individual, trust, or estate having net income greater than
33 or equal to eighty-four thousand five hundred one dollars ($84,501) but not
34 greater than eighty-nine thousand four hundred dollars ($89,400) shall reduce
35 the amount of income tax due as determined under subdivision (a)(3)(B) of
36 this section by deducting a bracket adjustment amount in accordance with the
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1 table set forth below:
2 From Less Than or Equal To Bracket
3 Adjustment
4 Amount
5
6 $84,501 $84,600 $485
7 $84,601 $84,700 $475
8 $84,701 $84,800 $465
9 $84,801 $84,900 $455
10 $84,901 $85,000 $445
11 $85,001 $85,100 $435
12 $85,101 $85,200 $425
13 $85,201 $85,300 $415
14 $85,301 $85,400 $405
15 $85,401 $85,500 $395
16 $85,501 $85,600 $385
17 $85,601 $85,700