TO REDUCE THE INCOME TAX LEVIED ON INDIVIDUALS, TRUSTS, ESTATES, AND CORPORATIONS; TO TRANSFER SURPLUS FUNDS TO THE ARKANSAS RESERVE FUND SET-ASIDE; AND TO DECLARE AN EMERGENCY.

HB 1001 reduces state income taxes for individuals, trusts, estates, and corporations in Arkansas effective January 1, 2024. For individual taxpayers, the bill adjusts tax brackets and rates, lowering the top marginal rate for high earners and providing specific dollar-for-dollar reductions to those with incomes between $87,001 and $92,700. Corporations and foreign businesses operating in the state also see lower rates, with the top tax bracket dropping from 4.8% to 4.3% on income exceeding $11,000. Additionally, the legislation directs surplus funds to the Arkansas Reserve Fund Set-Aside and declares an emergency to expedite the process.