Arkansas governor signs income, property tax cuts into law

Arkansas Gov. Sarah Huckabee Sanders has signed legislation cutting the state's property and income taxes

LITTLE ROCK, Ark. (AP) --- Arkansas Gov. Sarah Huckabee Sanders on Wednesday signed legislation cutting the state's property and income taxes after lawmakers wrapped up a special session where they also approved legislation to keep the state's hunting and fishing programs running.

Sanders signed the measure cutting the state's top corporate and individual income tax rates, and another raising the homestead property tax credit, hours after the predominantly Republican Legislature adjourned the session that began Monday.

The cuts are the latest in a series of income tax reductions Arkansas has enacted over the past several years. Sanders, a Republican, has signed three cuts into law since taking office last year and has said she wants to phase the levy out over time.

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“We are moving in the right direction and we're doing so responsibly,” Sanders said at a news conference before signing the legislation.

The measures will cut the state's top individual tax rate from 4.4% to 3.9% and the top corporate rate from 4.8% to 4.3%, retroactively, beginning Jan. 1. Finance officials say the cuts will cost about $483 million the first year and $322 million a year after that.

Supporters argued the state is in a healthy position for the reductions, noting that Arkansas is forecast to end the fiscal year with a $708 million surplus.