ARKANSAS (KNWA/KFTA) — The new year brings new laws for Arkansans.
Starting in 2023, corporations in the top tax bracket will see a tax cut from 5.9% to 5.3%. Scott Hardin with the Arkansas Department of Finance and Administration said it will impact about 5,000 corporations in the state.
“Each of those companies will save about $13,600 every year as a result of the reduction from 5.9% to 5.3%,” Hardin said.
In 2022, Arkansas’ top individual income tax rate was reduced to 4.9%. Arkansans in that tax bracket will see those reductions on their tax returns in 2023.
“That’s $295 million that remains with Arkansans and their pockets, they can spend it how they want to versus with the government,” Hardin said.
Economist at the University of Arkansas Jeff Cooperstein said these tax cuts are a double-edged sword.
“You have to think about how are you going to make up for the lost revenue with your budget? Arkansas’s fortunate in that we’re running a surplus, an average surplus for a few years now, so that makes it easier to deal with,” Cooperstein said.
Cooperstein said lowering corporate tax cuts could encourage more economic development in the state.
Starting January 1, alcohol sales on Sundays will be legal in Rogers and Bentonville.
“Those communities are ensuring that they keep revenue within their communities,” Hardin said.
Hardin said 2023 will be the first year Arkansans will be able to participate in sports betting during major sporting events like March Madness and the Super Bowl.