TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH PERCENT TO REDUCE THE SURPLUS FUNDS COLLECTED FROM ARKANSAS TAXPAYERS.

Fiscal Impact Statement Bill: SB289 Amendment Number: S1 Bill Subtitle: TO CUT THE STATEWIDE SALES TAX RATE BY ONE-EIGHTH PERCENT TO REDUCE THE SURPLUS FUNDS COLLECTED FROM ARKANSAS TAXPAYERS. --------------------------------------------------------------------------------------------------------------------------------------- Sponsor: Sen. Dotson Basic Change: SB289-S1 (engrossed 2/27/25) reduces the special revenue sales and use tax rate that funds the Property Tax Relief Trust Fund from .5% to .375%. In November 2000, voters approved Arkansas Constitutional Amendment 79 to provide property tax relief. In response, the Arkansas General Assembly increased the Arkansas sales and use tax rate by .5% effective January 1, 2001. The revenues from this .5% sales and use tax are special revenues credited to the Property Tax Relief Trust Fund. In addition, the General Assembly established the Homestead Property Tax Credit at $300 per homestead, which has been raised to $500 per homestead. The Property Tax Relief Trust Fund is a special revenue trust fund used to reimburse each county treasurer in accordance with the counties' proportionate share of the total statewide property tax reducti