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On Wednesday (June 19), Arkansas Gov. Sarah Huckabee Sanders signed legislation to reduce the state's property and income taxes.

Arkansas Governor Signs Tax Cuts and Property Credit Increase

This move came after lawmakers concluded a special session where they also passed legislation to ensure the continuity of the state's hunting and fishing programs.

The measure cutting the state's top corporate as well as individual income tax rates was signed by Sanders, along with another measure that raised the homestead property tax credit.

This happened just hours after the predominantly Republican Legislature ended the session that began on Monday, AP reported.

The cuts are part of a series of income tax reductions that Arkansas has implemented in recent years. Sanders, a Republican, has successfully enacted three cuts into law since assuming office last year and has expressed her intention to gradually eliminate the levy.

Arkansas Expects $708 Million Surplus, Approves Tax Cuts

The income tax cuts are expected to be the third reduction signed by Sanders, who has consistently advocated for phasing out the income tax since she assumed office last year.

According to recent projections, the state is expected to finish its current fiscal year with a surplus of $708 million.

The legislation proposes a reduction in the top individual income tax rate from 4.4% to 3.9% and the top corporate rate from 4.8% to 4.3%, with retroactive effect from January 1.

Based on the finance officials, the cuts will result in a cost of approximately $483 million in the first year and $322 million annually thereafter.

According to ABC24, the proposed tax cut bill has elicited mixed reactions from local legislators, with a number of Republicans in the state expressing their support and a few Democrats raising their concerns.

However, Democrat Vivian Flowers, a lawmaker, expressed skepticism about the bill's potential benefits and raised concerns about additional funding for government officials.

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