summary
Introduced
12/12/2024
12/12/2024
In Committee
01/13/2025
01/13/2025
Crossed Over
Passed
Dead
05/05/2025
05/05/2025
Introduced Session
Potential new amendment
95th General Assembly (2025 Regular)
Bill Summary
AN ACT TO CREATE THE INFLATION REDUCTION ACT OF 2025; TO AMEND THE STATE INCOME TAX LAWS; TO REMOVE THE CAP ON INCREASES TO THE STANDARD DEDUCTION AND INDIVIDUAL INCOME TAX TABLES DUE TO INFLATION; TO TIE INCREASES OF THE STANDARD DEDUCTION AND INDIVIDUAL INCOME TAX TABLES TO A REGIONAL INDEX OF THE CONSUMER PRICE INDEX; FOR OTHER PURPOSES.
AI Summary
This bill modifies how Arkansas calculates inflation adjustments for income tax purposes by changing the Consumer Price Index (CPI) reference from the national All Urban Consumers index to the West South Central division of the South Region, and by removing the previous 3% cap on annual inflation adjustments. Specifically, the bill updates two key areas of state tax law: the method for annually adjusting income tax tables and the method for increasing the standard income tax deduction. Under the new provisions, the standard deduction and income tax tables will be indexed to the regional CPI without a maximum percentage limit, potentially allowing for larger adjustments based on actual local economic conditions. The changes will take effect for tax years beginning on or after January 1, 2025, and are designed to provide more responsive and localized inflation adjustments for state income tax calculations. The bill is officially titled the "Inflation Reduction Act of 2025" and aims to create a more flexible approach to maintaining the real value of tax brackets and standard deductions in response to regional economic changes.
Committee Categories
Budget and Finance
Sponsors (52)
Jonathan Dismang (R)*,
David Ray (R)*,
Brandon Achor (R),
Wade Andrews (R),
Sonia Barker (R),
Howard Beaty (R),
Rick Beck (R),
Mary Bentley (R),
Stan Berry (R),
Harlan Breaux (R),
Keith Brooks (R),
Alyssa Brown (R),
Karilyn Brown (R),
Matt Brown (R),
Nick Burkes (R),
Rebecca Burkes (R),
Joey Carr (R),
John Carr (R),
Fran Cavenaugh (R),
Cameron Cooper (R),
Bruce Cozart (R),
James Eaton (R),
Les Eaves (R),
Justin Gonzales (R),
Zack Gramlich (R),
R.J. Hawk (R),
Mike Holcomb (R),
Steve Hollowell (R),
Ashley Hudson (D),
Lane Jean (R),
Wayne Long (R),
Robin Lundstrum (R),
Roger Lynch (R),
John Maddox (R),
Mindy McAlindon (R),
Rick McClure (R),
Austin McCollum (R),
Richard McGrew (R),
Brit McKenzie (R),
Stephen Meeks (R),
Jon Milligan (R),
Aaron Pilkington (R),
Scott Richardson (R),
Marcus Richmond (R),
Ryan Rose (R),
Johnny Rye (R),
Bart Schulz (R),
Randy Torres (R),
Kendon Underwood (R),
Steve Unger (R),
Carlton Wing (R),
Jim Wooten (R),
Last Action
Died in House Committee at Sine Die adjournment. (on 05/05/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://www.arkleg.state.ar.us/Bills/Detail?id=hb1065&ddBienniumSession=2025%2F2025R |
House Amendment H1 | https://arkleg.state.ar.us/Home/FTPDocument?path=%2FAMEND%2F2025R%2FPublic%2FHB1065-H1.pdf |
Fiscal Note/Analysis | https://arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2F2025%2F2025R%2FFiscal+Impacts%2FHB1065-DFA1.pdf |
BillText | https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FHB1065.pdf |
Loading...