Tax Cuts, Voter ID Law Now In Effect
by January 3, 2014 9:19 am 105 views
From John Lyon with our content partner, the Arkansas News Bureau:
Several tax cuts and a law requiring voters to show photo ID at the polls are among laws enacted by the state Legislature in 2013 that took effect on New Year’s Day.
Act 1459 eventually will reduce all of the state’s income tax rates, but the legislation was designed to be phased in over two years. Starting Wednesday, the law reduces the state’s lowest income tax rate from 1 percent to nine-tenths of a percent; it will reduce the rates for all other tax brackets by one-tenth of a percentage point starting Jan. 1, 2015.
The tax cut is estimated to cost $2.5 million this fiscal year, $30.4 million in fiscal 2015 and $55.7 million in fiscal 2016, according to the state Department of Finance and Administration.
Another phased-in tax cut taking effect with the new year is Act 1488. Under the law, capital gains in excess of $10 million realized this year or later are exempt from the state income tax.
The law also will increase the income tax exemption for net capital gains to 50 percent and increase the standard income tax deduction to $2,200 beginning Jan. 1, 2015.
Act 1488 is estimated to cost $600,000 this fiscal year, $18.1 million in fiscal 2015 and $24.5 million in fiscal 2016.
Also taking effect Wednesday is Act 1441, which creates a sales tax exemption on the utilities used by commercial agricultural structures such as chicken houses and greenhouses. The exemption is expected to cost $4 million this fiscal year and $10 million in fiscal 2015.
Act 1408 creates an exemption from the state income tax for service pay or allowances received by active duty members of the armed services, including members of the National Guard and Reserve units. The exemption is expected to cost $3.6 million in this fiscal year and $7.2 million in fiscal 2015.
ACT 1452 gives a volunteer firefighter an income tax deduction of up to $1,000 on required firefighting equipment and the loss of personal property in the course of firefighting activity. The deduction is estimated to cost $48,700 starting in fiscal 2015.
Also in effect is Act 595, which requires voters to show photo ID at the polls. The legislation was written to take effect on the later of two dates: Jan. 1 or the date when the secretary of state’s office has funding for the issuance of voter ID cards — funding that the office says it now has.
Read more at this link.