Gov. Hutchinson issues call for special session
LITTLE ROCK, Ark. (KAIT) – On Friday, Aug. 5, Arkansas Gov. Asa Hutchinson issued a call for the Third Extraordinary Session of the 93rd General Assembly.
According to a news release, the purpose of the session is to provide immediate tax relief for Arkansans and set aside $50 million for a school safety grant program.
“As inflation rises and the cost of living increases, Arkansans need more money in their pockets,” Gov. Hutchinson said. “With a record surplus in the last year’s fiscal year, we have the ability to provide financial relief and ensure our children can be protected in their schools.”
The governor’s call consists of the following items:
- Lower the top individual tax rate to 4.9%, retroactive to Jan. 1, 2022, saving taxpayers $295 million in 2022
- Lower the corporate income tax rate to 5.3%, beginning Jan. 1, 2023
- Create a $150 nonrefundable low- and middle-income tax credit, saving taxpayers $156.3 million in 2022
- Align Arkansas law with the federal depreciation schedule
- Transfer $50 million from the state surplus for the purpose of a school safety grant program, consistent with the recommendations of the Arkansas School Safety Commission.
The $50 million for a school safety grant program comes after the Arkansas School Safety Commission presented their interim report to Gov. Hutchinson on Tuesday, Aug. 2. The program would provide funding for school districts to increase security measures on their campuses.
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