LITTLE ROCK, Ark. – Arkansas residents could be less in taxes if a bill filed in the legislature Thursday afternoon becomes law. 

Gov. Sarah Huckabee Sanders was joined by House Speaker Rep. Matthew Shepherd (R-El Dorado) and Sen. Jonathan Dismang (R-Beebe) in announcing the legislation.

Sanders said the state needed the legislation. 

“Arkansans need relief and they need it quickly,” the governor said. “Whether it’s a single mom living in Warren, or working parents in Ozark, this bill is aimed directly at the hard-working Arkansans hurting most from inflation.”

The bill would reduce state individual income taxes by $100 million and corporate taxes by $24 million, Sanders claimed.

Senate Bill 549 lowers the income tax rate for individuals making between $24,300 to $87,000 per year to 4.7% for 2023. 

Currently, the top personal income tax rate in the state is 4.9% for individuals making between $23,600 to $84,500.

SB549 would also lower the corporate tax rate from 5.3% to 5.1% for 2023.

The legislation would be retroactive to Jan. 1, 2023.

During her inauguration, Sanders announced that she intended to seek a lower tax rate. 

The state budget surplus for fiscal year 2022 is $1.628 billion.