Tax cuts in the 87th General Assembly

Earlier in the week, the House Revenue & Tax committee approved several tax cuts, rebates and incentives, all of which (except one) were approved on the floor of the House. Few give many of these a chance of making it out of Senate Revenue & Tax, which will meet on Monday to take up these and other bills before the committee. Here's a rundown of proposed tax cuts in this legislative session and action taken:

Signed into law:
• Act 436 Reduction in sales tax on groceries (fiscal impact: $32,000,000)
• Act 695 Reduction in excise tax on manufacturers' energy consumption (fiscal impact: $9,000,000)
• Act 499 Reduction in excise tax on bingo (fiscal impact: $700,000)
• Act 816 Tax rebate and incentives program for motion picture production

On the governor's desk:
• SB442 Exempting produce from sales tax at farmers' markets (fiscal impact: $150,000)

FYI -- signing deadlines in Arkansas: During session, Beebe must sign or veto legislation within 5 days of transmittal (excepting Sundays), or it becomes law without signature. If legislation is transmitted with less than 5 days left in the session, he must act within 20 days of transmittal (excepting Sundays), or legislation becomes law without signature.

On the House floor (but removed from calendar):
• SB2 Repeals gross receipts tax on self-storage units (fiscal impact: $4,000,000)

On the Senate floor:
• HB2191 Changes qualifications for geotourism tax credit

Senate bills in the House Revenue & Tax committee:
• SB223 Exempts binder twine and other equipment to bale from sales tax
• SB9 Income tax credit for the rehabilitation of historic structures (25% of expenses)

House bills in the Senate Revenue & Tax committee:
• HB1378 Income tax relief for two or more dependents if income under $17,200
• HB2250 Expanding definition of manufacturer for the recently enacted tax reduction
• HB1995 Tax credit for the sale of a manufactured home park
• HB1491 Exemption from excise tax vehicles provided pursuant to a warranty/service contract
• HB1563 Exempting active military duty personnel from income tax
• HB1911 Extends the net operating loss carry-forward period for income tax
• HB2202 Back-to-school sales tax holiday bill
• HB1686 Income tax exemption for overtime work in 2009 ice storm disaster areas
• HB1060 Investment tax credits for rehabilitation of central business districts
• HB1225 Increasing the time that a seller can deduct value of a used car for sales tax owed
• HB1748 Income tax deduction for purchase and use of a solar energy system
• HB1905 Sales tax reduction for utilities used in agriculture
• HB1947 Capital Gains Reduction Act (fiscal impact: $43,000,000)

All other proposed tax cuts remain in the committee of their original chamber and are unlikely to make it through both chambers and to the governor's desk before the scheduled April 9 adjournment, although it is possible. Even those that do make it to the governor's desk are going to face pretty high scrutiny, since any that are signed into law will simply move the bar in the Revenue Stabilization Act and cause some items in the B category in this session and hereafter to not be funded.