Arkansas Legislature Puts Big Issues to Rest

by Mark Carter  on Friday, Apr. 19, 2013 12:00 am  

The state offered an incentive package of $125 million plus $216 million over 14 years in recycling tax credits.

Ground is expected to be broken later this year just south of Osceola. Big River officials promise 525 jobs right off the bat at an average annual salary of $75,000.  Nucor Steel already operates two facilities in Mississippi County.

Tax Cut Package Advanced

The House passed (with the full Senate expected to do so late Thursday) a package of tax cuts totaling $120 million and including reductions in the state income tax, capital gains tax and the taxes manufacturers pay on utilities. 

The tax cuts, to take effect in the 2014 tax year, include a lowering of the top income tax rate from 7 percent to 6.875 percent, and a raising of the minimum income within that rate from $34,000 to $44,000. 

In addition, manufacturers would see the taxes they pay on electricity and natural gas reduced to 1 percent by 2015. 

Another component to the tax cut package would reduce the sales tax paid by manufacturers on repairs and replacement of certain equipment, and eliminate it by 2018.

The capital gains tax exemption was increased from 30 percent to 70 percent for capital gains of more than $5 million made from investments before Jan. 1, 2014.

After that date, it would revert to 30 percent for capital gains and create a permanent 70 percent exemption for capital gains made from the sale of all Arkansas property acquired thereafter and owned for more than a year before the sale.

Another component of the legislation creates a $2,000 individual deduction beginning in 2014, increasing annually by $200 through 2016. 

Also, it exempts from state income tax any net capital gains of more than $10 million from an investment made before Jan. 1, 2014. 

As of late last week, the bills cleared their final legislative hurdles and awaited only Beebe’s signature.

 

 

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