Governor Mike Beebe Of Arkansas released information on the recent round of tax cuts that will benefit Arkansans. One of the first cuts that began in July was a Grocery Tax Cut from 2% down to 1 1/2% that started on July 1st. Governor Beebe stated that since his election in 2006 he has cut the Grocery Tax from 6% to 1 1/2%.
Another tax break is for Manufactures, their tax on utilities was 3 1/4% and is now down to 2 3/4%. The cuts are part of a $35 million tax cut package. Arkansas is one of only a few states that has avoided fiscal problems, Gov. Beebe warned agencies that they would be operating under a tighter budget because of the revenue loss. The state revenueâ€™s are already $18.7 million above forecast according to May Department of Finance figures.
Another key tax cut that will take effect on January 1st is a new law raising the sales tax exemption on used cars from $2500.00 up to $4000.00.
Arkansas will also have itâ€™s first â€œTax Holidayâ€ on clothing and school supplies the first week in August.