Tax Credits, Exemptions Focus of Latest Bills Filed

DECEMBER 5, 2006 - Posted at 7:49 a.m. CST

LITTLE ROCK (AP) - Lawmakers focused on the state's property tax credit and used car sales tax exemption as they filed bills in advance of the 2007 legislative session.

Republican Representative Jim Medley of Fort Smith filed proposals to increase the state's property tax credit and to increase the sales tax exemption for used car sales.

Meanwhile, Republican Representative James Norton of Harrison filed a homestead credit proposal nearly identical to Medley's. But unlike Medley's bill, Norton's proposal would not tie the property tax credit to annual cost-of-living increases.

Governor-elect Mike Beebe has proposed raising the homestead tax credit to $350, and says such an expansion of the credit would cost the state roughly $22.4 million a year.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)