A Service of UA Little Rock

Arkansas Governor Proposes Increasing Homeowners' Tax Credit

Michael Hibblen

The governor of Arkansas is proposing increasing a property tax credit that thousands of homeowners receive for their primary residence.

Republican Gov. Asa Hutchinson told reporters on Monday he'll ask lawmakers next year to increase the state's homestead tax credit from $350 a year to $375. Hutchinson says the increased credit will cost an additional $18 million a year.

More than 719,000 Arkansas homeowners last year received the credit, which is funded by a one-half cent statewide sales and use tax, totaling $230 million. State finance officials say the fund that pays for the credits had a $78.6 million surplus last year.

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