Arkansas House Bill HB1152

Arkansas 2023 Regular Session

• Introduced: 1/17/23
• Refer: 1/17/23
• Failed: 5/1/23

Caption

To Create An Income Tax Exemption For Teachers.

Impact

If enacted, HB1152 will allow teachers to keep more of their income, which may serve as an incentive for individuals to pursue careers in education, potentially addressing teacher shortages in Arkansas. This exemption is intended to acknowledge and reward the critical role teachers play in the development of students and education as a whole. Additionally, the effective date for this exemption is set for tax years beginning on or after January 1, 2023.

Summary

House Bill 1152 aims to amend individual income tax laws in the state of Arkansas by creating a tax exemption specifically for teachers. The bill defines 'teachers' as individuals employed in instructional capacities in public or open-enrollment charter schools who dedicate a significant portion of their work to teaching K-12 students. The proposed exemption would apply to the first fifty thousand dollars of wages received by these qualifying teachers, thereby providing financial relief to educators in the state.

Contention

Although the bill has been framed as a positive step towards supporting teachers, there may be concerns over the revenue impact on the state's budget. Critics might argue that while it supports educators, it could limit funds available for other essential services. There may also be debates on whether this exemption provides sufficient equity for all educators, including those in private or different educational settings outside this scope.