Governor Asa Hutchinson announced Monday he will support legislation in 2019 to increase the state’s Homestead Property Tax Credit to $375, providing additional tax relief for Arkansas homeowners.
“Our state property owners deserve a break, and with our state’s strong financial performance, we can afford to give them one,” Governor Hutchinson said.
The proposal would increase the tax credit from $350 to $375. The state reimburses counties for the costs of these credits, using funds deposited in the Property Tax Relief Trust Fund. Money deposited in this fund can be used only for tax relief. The balance in this fund was $78 million at the conclusion of the 2017 fiscal year. Combined, the increased tax credit will save Arkansas homeowners an estimated $18 million annually.
“Any idea that allows us to put money back in the hands of Arkansas taxpayers is a good idea,” Governor Hutchinson said. “The DFA analysis demonstrates this is a sustainable plan. I am pleased that we have found yet another way to make life easier for Arkansans. I am confident the General Assembly will approve this idea so that we can quickly move forward in 2019.”
At a meeting in February, the Association of Arkansas Counties asked the governor to consider the increase. A Department of Finance and Administration analysis done at the governor’s request determined that the Property Tax Relief Trust Fund could accommodate the increased tax credit.