Order
2025R: SB233
TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX.
Latest action: Died in Senate Committee at Sine Die adjournment.
View Bill PDF
Printable PDF for this one bill. It includes the bill number, session, title, and lead or primary sponsors; the latest status; a stored plain-language summary, or the official description if none is stored; your account notes if you choose to include them; every action from oldest to newest; and links to the bill text, act, amendments, and fiscal documents. It does not include campaign finance, committee members, hearings, or vote checklists.
Email this Bill
| Sponsor | Role |
|---|---|
| C. Penzo | lead |
| Lundstrum | primary |
| Maddox | cosponsor |
| When | Chamber | Action |
|---|---|---|
| Feb 13, 2025, 3:45 p.m. CT | Senate | Filed |
| Feb 13, 2025, 3:57 p.m. CT | Senate | Read first time, rules suspended, read second time, referred to REVENUE & TAX - SENATE |
| May 5, 2025, 3:59 p.m. CT | Senate | Died in Senate Committee at Sine Die adjournment. |
No amendments stored.
Fiscal impact
DFA1 · Feb 26, 2025
Fiscal Impact Statement
Bill: SB233
Bill Subtitle: TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO
PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME
TAX.
---------------------------------------------------------------------------------------------------------------------------------------
Sponsors:
Sen. Penzo and Reps. Lundstrum and Maddox
Basic Change:
SB233 exempts non-grantor trusts from state income tax. Income earned by a trust is generally subject
to income tax in Arkansas. SB233 exempts a trust administered by a trustee who is an Arkansas
resident if the trust is not considered a "grantor trust" under 26 U.S.C. § 671 et seq. A grantor trust is a
trust where the creator of the trust retains ownership of the assets of the trust. Under SB233, a
non-grantor trust will be exempt from income tax.
SB233 is effective for tax years beginning on or after January 1, 2025.
Fiscal Impact:
FY2026 - $11M General Revenue Reduction
[ Fiscal impact is gathered from actual tax reported on electronically filed 2023 AR Fiduciary Income
Tax Returns on complex and simple fiduciary returns. Decedent, grantor, bankruptcy, and charitable
fiduciary returns are exclude
No votes yet.
✓
No checklist selected.
Choose a checklist or click New checklist.. to create one.
Talking Points
Notes
Team notes
In the News
News stories that mention SB233, found by bill number and title words and filtered for Arkansas coverage. Checked about every 12 hours for bills people follow.
No news stories found for this bill yet.
Last checked Nov 12, 2026, 7:21 p.m. CT.
AI Summary
Generate an AI summary for this bill.