WATCH: Gov. Hutchinson signs tax cut into law
LITTLE ROCK, Ark. (KAIT) - Arkansas Governor Asa Hutchinson signed into law the second-largest tax cut in the state’s history.
The majority-Republican House and Senate on Thursday adjourned after giving final approval to the $500 million tax cut package Hutchinson proposed.
Hutchinson called a special session to take up the tax cuts after the state’s surplus reached $1.6 billion.
The governor held a news conference Thursday, Aug. 11, in Little Rock to sign the legislation, which also provides $50 million for a school safety program.
“This tax relief package that has just been enacted takes over $400 million from the state coffers and puts it in individual Arkansan’s pockets,” Hutchinson said. “That is a transfer of wealth from the government to the taxpayer, and it could not come at a more important time.”
According to a news release from his office, when Hutchinson was elected in 2014, the income tax rate was 7 percent. Thursday’s signing lowered the tax to 4.9 percent, the lowest in Arkansas history.
“In less than 8 years, we have taken the income tax rate from the highest it has ever been to the lowest it has ever been, while also growing our state reserves from $0 to $2 billion,” Governor Hutchinson said. “We have accomplished this through a smarter, leaner, and more efficient state government.”
The bill also included a $150 non-refundable tax credit for low- to middle-class income taxpayers. In addition, the bill provides $50 million for a School Safety Grant program.
“When parents drop their children off at school, they want to have confidence their children are going to be safe,” Hutchinson said. “This $50 million grant program for local school districts will allow schools to implement some of the one-time recommendations that come out of the School Safety Commission.”
Watch the signing here>>
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