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New Arkansas tax cut bill The latest Arkansas tax cut bill signed into law by Gov. Sanders on Sept. 14 further reduces the state's top income tax rate from 4.7% to 4.4%, (This rate was previously reduced from 4.9% in April 2023.)
What are government revenue and spending? Government revenue is the money the state government receives from all the taxes Arkansans pay, voluntary fees Arkansans pay (such as college tuition), and transfers from the federal government.
In Arkansas in fiscal year 2015, 48.6 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 34.2 percent of total state tax collections. Education accounted for 29.6 percent of state expenditures in fiscal year 2015, while 25.5 percent went to Medicaid.
Arkansas uses all major state and local taxes. After federal transfers, Arkansas's largest sources of per capita revenue were general sales taxes ($1,872) and charges ($1,383), such as state university tuition and highway tolls.
Job Creation Income Tax Credit (Advantage Arkansas) ? Act 182 of 2003, as amended, § 15-4-2705. The Advantage Arkansas program provides an Arkansas income tax credit based upon a percentage of the annual payroll paid to the new full-time permanent employees hired as a result of an approved project.
Arkansas is a major exporter of rice, soybeans, cotton, poultry and feed grains.
Homeowners in Arkansas may receive a homestead property tax credit of up to $375 per year. Begining with the 2024 tax bills the general assembly has authorized an increase up to $425. The credit is applicable to the ?homestead?, which is defined as the dwelling of a person used as their principal place of residence.
ArkPlus Income Tax Credit (ACA §15-4-2706(b)) The Consolidated Incentive Act 182 of 2003, as amended, allows the Arkansas Economic Development Commission (AEDC) to provide a ten percent (10%) income tax credit to eligible businesses based on the total investment in a new location or expansion project.