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Hutchinson says he plans to ask Legislature to increase tax credit for homeowners

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Gov. Asa Hutchinson said Monday he plans on asking the Legislature to increase a tax credit given to Arkansas homeowners by $25 when lawmakers meet again in 2019.

The state’s homestead tax credit, which currently sits at $350, should be raised to $375, Hutchinson said, because the state government has more than $78 million in the account to used to pay counties back for the credit, which comes off residents’ property tax bill.

Raising the exemption will cost about $18 million a year from that account, Hutchinson said, but will have no other effect on the state budget. The account is replenished through a half-cent sales tax.

About 716,000 parcels in the state receive the homestead credit, according to Chris Villines, the executive director of the Arkansas Association of Counties.

The last time the homestead tax credit was increased was in 2007, under Hutchinson’s predecessor, Democratic Gov. Mike Beebe. At that time, it was raised from $300 to $350.

Read Tuesday's Arkansas Democrat-Gazette for full details.

Comments

mrcharles says...

Dang it LR, you is or is you not the AG of this state , and also you's about to have a baby, quit looking like you just set on a frog .

Strange , many gop ILKS believe home ownership is not for the average Dick or Jane, but only the Elites like trump and his murder of crows. Now W believed a little different but see Romney and other ILKS. They of course want to rent to the peasants and of course get all sorts of tax breaks, after all it is hard being part of the aristocrats .

Posted 16 April 2018, 1:04 p.m. Suggest removal

ebf says...

Ask for a bigger increase. Let's turn some of that money back to the state constituents. I'm waiting for the utilities to give some of that money back but haven't seen that. Make the homestead tax credit $400!

Posted 16 April 2018, 1:45 p.m. Suggest removal

CommonSense68 says...

Notice that it's a shell game. The Money to cover the increase in the tax credit comes from a sales tax we are having to pay.

AND while this game is going on the legislature is looking for ways to raise state revenue such as making Arkansas the State with highest sales tax on groceries. Only 14 states currently have ANY sales tax on groceries. Does everyone own a home, no, but everyone buys groceries.

Posted 29 April 2018, 12:38 a.m. Suggest removal

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