They Pulled It Off: Tax Reform Task Force Picks Preferred Individual Tax Cuts Plan, Approves Draft Legislation Package, and Adjourns

The Arkansas Tax Reform and Relief Legislative Task Force has concluded its 20 months of proceedings by approving draft legislation for a roughly $400 million tax reform and relief package that should guide the state's tax policy for the next decade. If implemented, it will provide Arkansas with a fairer and more competitive tax system while maintaining the state's fiscal stability. The next step will be to see the proposals through and further refine them as part of the regular legislative process in 2019. [More]

Tax Reform Task Force Recommends Individual Cuts First, then Business Tax Reforms

The Arkansas Tax Reform and Relief Legislative Task Force met again on the morning of November 27 to consider structuring and timing of its recommended policy changes. On the whole, the Task Force seems to be on track to recommend some form of individual income tax cuts then followed by several changes to business taxation aimed to make the state more competitive. Tax triggers would be used to prevent budget shortfalls under this approach, which differs from the incremental biennium-by-biennium changes seemingly preferred by the Governor's Office and the Department of Finance and Administration. The Task Force will vote on its legislative package at its next meeting on December 12. [More]

Tax Reform Task Force Sees Draft Bills, Scrutinizes Credit Programs, and Weighs Tax Triggers and Revenue Projections

The Arkansas Tax Reform and Relief Legislative Task Force convened again on September 26 and 27 to hear additional testimony and refine its proposals. It was an eventful day-and-a-half: Draft bills for some Task Force proposals were introduced. The Task Force scrutinized tax credit programs with an eye toward raising revenue. And Task Force members debated how to structure long-term implementation of the Task Force's planned cuts and reforms. [More]

Arkansas Tax Reform Task Force Approves Final Report and Hears DFA's "2-4-5.9/6.5%" Individual Tax Cuts Plan

The Arkansas Tax Reform and Relief Legislative Task Force met last week on August 22 and 23 to review the draft final report and hear additional testimony. The final report was approved without issue. The highlight of the testimony was a thoughtfully designed new plan presented by the Department of Finance and Administration (DFA) that would significantly simplify and cut individual income taxes. [More]