Arkansas 2025 Regular Session

Arkansas House Bill HB1065 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	JLL075 12/12/2024 7:14:57 AM JLL075
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1065 3
6	6	4
7	7	By: Representative Ray 5
8	8	By: Senator J. Dismang 6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO CREATE THE INFLATION REDUCTION ACT OF 2025; 9
12	12	TO AMEND THE STATE INCOME TAX LAWS; TO REMOVE THE CAP 10
13	13	ON INCREASES TO THE STANDARD DEDUCTION AND INDIVIDUAL 11
14	14	INCOME TAX TABLES DUE TO INFLATION; TO TIE INCREASES 12
15	15	OF THE STANDARD DEDUCTION AND INDIVIDUAL INCOME TAX 13
16	16	TABLES TO A REGIONAL INDEX OF THE CONSUMER PRICE 14
17	17	INDEX; FOR OTHER PURPOSES. 15
18	18	16
19	19	17
20	20	Subtitle 18
21	21	TO CREATE THE INFLATION REDUCTION ACT OF 19
22	22	2025. 20
23	23	21
24	24	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
25	25	23
26	26	SECTION 1. DO NOT CODIFY. Title. 24
27	27	This act shall be known and may be cited as the "Inflation Reduction 25
28	28	Act of 2025." 26
29	29	27
30	30	SECTION 2. Arkansas Code § 26 -51-201(d)(2), concerning the method of 28
31	31	annually adjusting the tables that determine the amount of individual income 29
32	32	tax due, is amended to read as follows: 30
33	33	(2) For purposes of subdivision (d)(1) of this section, the 31
34	34	cost-of-living adjustment for a calendar year is the percentage, if any, by 32
35	35	which the CPI for the current calendar year exceeds the CPI for the preceding 33
36	36	calendar year, not to exceed three percent (3%) . The CPI for any calendar 34
37	37	year is the average of the Consumer Price Index as of the close of the 35
38	38	twelve-month period ending on August 31 of such calendar year. “Consumer 36 HB1065
39	39
40	40	2 12/12/2024 7:14:57 AM
41	41	Price Index” means the last Consumer Price Index for All Urban Consumers the 1
42	42	West South Central division of the South Region published by the United 2
43	43	States Department of Labor. 3
44	44	4
45	45	SECTION 3. Arkansas Code § 26 -51-430(c), concerning the indexing of 5
46	46	the standard income tax deduction to inflation, is amended to read as 6
47	47	follows: 7
48	48	(c)(1) The Secretary of the Department of Finance and Administration 8
49	49	shall increase annually the standard deduction provided under subsection (b) 9
50	50	of this section by the cost -of-living adjustment for the current calendar 10
51	51	year, rounding the amount to the nearest ten dollars ($10.00). 11
52	52	(2)(A)(i) For purposes of subdivision (c)(1) of this section, 12
53	53	the cost-of-living adjustment for a calendar year is the percentage, if any, 13
54	54	by which the Consumer Price Index for the current calendar year exceeds the 14
55	55	Consumer Price Index for the preceding calendar year , not to exceed three 15
56	56	percent (3%). 16
57	57	(ii) If the Consumer Price Index for the current 17
58	58	calendar year does not exceed the Consumer Price Index for the preceding 18
59	59	calendar year, the standard deduction shall not be adjusted under this 19
60	60	subsection for that year. 20
61	61	(B) The Consumer Price Index for a calendar year is the 21
62	62	average of the Consumer Price Index as of the close of the twelve -month 22
63	63	period ending on August 31 of that calendar year. 23
64	64	(C) As used in this subsection, “Consumer Price Index” 24
65	65	means the most recent Consumer Price Index for All Urban Consumers the West 25
66	66	South Central division of the South Region published by the United States 26
67	67	Department of Labor. 27
68	68	28
69	69	SECTION 4. EFFECTIVE DATE. Sections 2 and 3 of this act are effective 29
70	70	for tax years beginning on or after January 1, 2025. 30
71	71	31
72	72	32
73	73	33
74	74	34
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76	76	36