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.

This bill lowers income tax rates for individuals, trusts, estates, and corporations in Arkansas starting January 1, 2024. For individuals, it adjusts tax brackets and rates, reducing the top marginal rate for high earners and introducing specific deductions for those with incomes between $87,001 and $92,700. Corporations and foreign businesses face a similar reduction, with the highest tax bracket dropping from 4.8% to 4.3% on net income exceeding $11,000. The legislation also directs any surplus funds to the Arkansas Reserve Fund Set-Aside to support state government operations and declares an emergency to expedite the process.