Arkansas House Bill HB1116

Arkansas 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23
• Failed: 5/1/23

Caption

To Create An Income Tax Credit For Taxpayers Sixty-five (65) And Older In An Amount Equal To The Taxpayer's Property Tax Payment On A Homestead.

Impact

The enactment of HB1116 will symbolize a significant change in state tax laws as it introduces a targeted financial incentive for senior citizens. This amendment to the Arkansas Income Tax Law aims to enhance the affordability of homeownership for older residents, ensuring that they can remain in their homes without being overly burdened by property taxes. The eligibility criteria, explicitly based on age, recognizes the unique financial challenges faced by seniors and underscores a commitment to supporting this demographic.

Summary

House Bill 1116 proposes a new income tax credit specifically designed for taxpayers aged sixty-five (65) and older. This credit is set to equal the amount of real property tax payments made by these individuals on their homestead in the prior calendar year. The bill aims to alleviate the financial burdens of property taxes on senior citizens, providing them with a potential refund if the tax credit exceeds their personal income tax liability. This initiative aligns with broader efforts to support the financial well-being of the elderly population in the state.

Contention

While there is an overarching consensus about the need to support elderly residents, some stakeholders may challenge the bill's implications for state revenue. Critics may argue that offering broad tax credits could impact state funding for essential services. Proponents, however, assert that assisting senior citizens with such credits can lead to positive economic outcomes by promoting stability in housing for the elderly. The dialogue surrounding this bill may revolve around balancing fiscal responsibility with social support for vulnerable populations.