House Tax Panel Quickly Dispenses With Tax Cut Bills

The Arkansas House Revenue and Tax Committee made quick work on agreed-upon tax cut measures in a special meeting on Friday.

Three bills, part of a compromise worked out by House, Senate and Beebe administration officials, sailed out of the House committee on voice votes.

The bills include:

SB 274 by Sen. Gilbert Baker (R-Conway) would raise the threshold for the application of the used car tax from $2,500 to a modified $4,000.

SB 275 by Sen. Bill Sample (R-Hot Springs) would provide a tax break for manufacturers on the sales tax paid on their utilities. Minor changes to this bill are still expected.

SB 276 by Sen. Larry Teague (D-Nashville) would reduce the grocery tax by an additional half-cent, part of Gov. Mike Beebe’s legislative package. An additional quarter-cent beyond the half-cent is not part of the deal.

Three more bills, currently in a Senate tax committee, are expected to move early next week. They are:

HB 1056 by Rep. Uvalde Lindsey (D-Fayetteville) makes technical corrections and provides tax relief for low-income heads of household.

HB 1369 by Rep. Matthew Shepherd (R-El Dorado). The bill would create a sales tax holiday for back-to-school sales.

HB 1421 by House Speaker Robert Moore (D-Arkansas City) to extend and expand geotourism tax incentives in the Delta.

House Speaker Robert Moore discussed the tax cut compromise in greater detail after the committee finished its business.  He’ll be our guest on Talk Business this weekend to discuss the compromise and aspects of his highway plan proposal, which must still clear the Senate.