ARKANSAS, USA — A new year in Arkansas means new and amended laws going into effect that'll shape the way of life in the Natural State. This year, we'll see a new state income tax, expanded healthcare coverage, and mental health training required in schools.
Not to mention here locally in Benton County, where two cities voted overwhelmingly in favor of purchasing a cold one on the lord's day.
Here's a breakdown of what you can expect to change in the next year.
Taxes
Tax Appeal Commission
A Tax Appeals Commission was created to start settling tax disputes between the Arkansas Department of Finance and taxpayers.
In July, the commission was created and positions were appointed this fall. According to the law, the Tax Appeals Commission should be ready to begin accepting and trying tax disputes on Jan. 1, 2023.
State income tax reduction
In Arkansas this year, the state income tax decreased to 4.9% from 5.3%— the lowest income tax rate in the state's history.
In 1929, the rate of 5% was established.
“In less than 8 years, we have taken the income tax rate from the highest it has ever been to the lowest it has ever been, while also growing our state reserves from $0 to $2 billion,” Gov. Asa Hutchinson said.
According to the Arkansas Economic Development Commission, the bill also includes a one-time income-tax credit for taxpayers (ranging from $10 to $150 depending on their 2022 net income).
Joint filers with a net income of up to $202,000 can receive a tax credit between $20 and $300, also depending on their 2022 net income.
A corporate tax rate reduction
Beginning Jan. 1, the corporate tax rate in Arkansas will be 5.3% instead of 5.9% for companies in the state.
For tax years beginning on or after Jan. 1, 2023, the corporate rates are:
- 1% on net income from $0-$3,000
- 2% on net income from $3,001-$6,000
- 3% on net income from $6,001-$11,000
- 5% on net income from $11,001-$25,000
- 5.3% on net income of $25,001 or more
Healthcare
Morbid obesity
Arkansas will begin providing healthcare coverage for the treatment of morbid obesity for state and public school employees. According to WalletHub, Arkansas ranks fourth in the US in terms of most overweight.
The law states that state-funded healthcare offered, issued, or renewed on or after Jan. 1, 2023, will offer coverage of bariatric surgeries for those diagnosed with medical issues related to morbid obesity.
Bariatric surgeries that could be covered:
- Gastric bypass surgery
- Adjustable gastric banding surgery
- Sleeve gastrectomy surgery
- Duodenal switch biliopancreatic diversion
Priority coverage will go to eligible Arkansans who have a diagnosis that medical experts have identified bariatric surgery as treatment, including cardiovascular disease, coronary disease, and sleep apnea.
Alcohol sales
Sunday sales
You can now head to Beaver Lake on a Sunday in Rogers and stop by a convenience store to pick up a six-pack. What about heading to the Bentonville Square for a nice Sunday stroll? You can grab a bottle of wine from the nearest grocery store on your way back.
According to the Benton County election results, Rogers residents voted over 70% in favor of alcohol sales on Sundays. In Bentonville, 74% of voters were in favor.
Alcohol and Beverage Control confirmed that the two cities can start selling alcohol on Sundays beginning Jan. 1, 2023.
Elections
Limit on campaign contributions
Beginning for elections that take place after the new year, it's illegal for someone to make a contribution to a candidate that is more than $2,700.
Not only just a one-time donation, but total contributions during an election, regardless of what office the candidate is campaigning for. This includes even if the candidate is running for more than one position or ends the campaign altogether.
Education
Mental health training
The School Safety Act was amended to include mental health awareness professional development, beginning in the 2023-2024 school year and to continue every fourth year thereafter.
This law going into effect follows in the footsteps of the recommendations stemming from the Arkansas School Safety Commission, which was commissioned in the aftermath of the Uvalde tragedy, that included expanding mental health training to staff members that work with students in Arkansas.
Teacher salary
Although the statewide "target average annual salary" of $51,822 was first instituted during the 2021-2022 school year and the same salary for the 2022-2023 school year, raising teacher salaries throughout the state has been a loud topic in recent months.
In November, Gov. Hutchinson recommended that lawmakers increase public school funding by $550 million over the next two years to raise teacher pay.
Since then, the House and Senate education committees have since endorsed proposals giving teachers $4,000 raises, though they differed on when the raises should be given. In the new year, teacher pay is expected to be decided on in the regular session come January 2023.
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