Weekly-ISH | May 5, 2026: Tax Cuts, a Softball Win, and What Comes Next
Updated: 1 day ago
Special Session Edition. A decade of work. A 3.3 point reduction. And we are not done.
What Is a Special Session?
The Arkansas General Assembly meets on a regular schedule: a full legislative session in odd-numbered years and a fiscal session in even-numbered years. In between, if something urgent needs to be addressed, the governor has a constitutional tool called a special session. The governor issues a formal proclamation, referred to as "the call," which convenes the legislature and defines the precise scope of what can be considered. The legislature cannot act on anything outside the call. That is not a procedural technicality; it is a constitutional limitation that keeps special sessions focused and short.
Historically, Arkansas governors have used special sessions sparingly. Since I took office in January 2023, we have convened three: a September 2023 special session that cut the top individual rate to 4.4% and the corporate rate to 4.8%; a June 2024 special session that cut the top individual rate to 3.9% and the corporate rate to 4.3%; and now this one. That is three special sessions in roughly two and a half years, all focused on returning money to Arkansas taxpayers.
What Is "The Call"?
The call is the governor's proclamation that defines the legal boundaries of a special session. It lists, precisely, the subjects the legislature may consider. Legislators can debate, amend, and vote only on matters within that scope. Anything outside the call is out of order. For this session, the call is limited to income tax rate reductions for individuals and corporations. That is it. No other business.
A Decade of Cuts. 3.3 Points Off the Rate. And We Are Not Finished.
About a decade ago, the top individual income tax rate in Arkansas was 7.0%. Sit with that number for a second. Seven percent. That was the ceiling Arkansans were living under when the legislature started this project in 2013. The rate came down to 6.9%, then work continued through every session since 2015 until 2019 brought it to 5.9%. The 2021 session was the landmark: a $500 million annual tax relief package cut the top rate to 4.9%. Then Governor Sanders took office and the pace accelerated. Spring 2023 to 4.7%. Special session in September 2023 to 4.4%. Special session in June 2024 to 3.9%. And now, this week: 3.7%.
That is a reduction of 3.3 percentage points on the top individual rate over roughly a decade, accomplished without cutting essential services and without running a deficit. Arkansas's reserves grew from essentially zero to over $2 billion during that same period. The corporate rate follows a parallel track, dropping from 6.5% down to 4.1% with this session's cut.
The goal, stated plainly since Governor Sanders' inaugural address, is to eliminate the income tax entirely. We are not there. But the direction is clear and the commitment is real. I'll be voting yes on this one.
7.0%: Top rate in 2013. Where this started.
3.7%: New top rate after this session's cut.
$2B+: State reserves built while cutting taxes.
Your Paycheck. Your Family. Your Money Back.
Yesterday, the House Revenue and Taxation Committee advanced HB1001, which lowers the top individual income tax rate to 3.7% beginning January 1, 2026, and reduces the top corporate rate to 4.1% starting January 1, 2027. The individual cut is retroactive to the start of this year, which means the savings show up when you file.
What does 0.2% actually mean in real terms? For a family earning $75,000 a year, it is roughly $150 back in their pocket annually. For someone earning $150,000, closer to $300. Pro-big-government advocates will say 0.2% is not transformational. They are wrong, as they often are. No single cut tells the full story; you have to look at these in totality. Each reduction compounds the last. The cumulative effect of going from 4.9% to 3.7% since 2023 is a savings of over $900 per year for a family at $75,000 in taxable income. That adds up to something real.
There is also the competitive argument, which matters for everyone even if it does not show up directly on your tax return. Arkansas now has the lowest top income tax rate of any Southern state that still has an income tax. That matters for businesses deciding where to locate, for young people deciding where to build a career, and for families thinking about whether to stay. A state that consistently lowers the cost of living here is a state that wins that argument over time.
TLDR
Governor called a special session to cut income taxes. The call limits the legislature to that topic only.
HB1001 cuts the top individual rate from 3.9% to 3.7%, retroactive to January 1, 2026. Corporate rate drops to 4.1% in 2027.
Arkansas has cut taxes in every session since 2015. Top rate has gone from 7.0% to 3.7% over roughly a decade.
For a family at $75K taxable income, the cumulative cuts since 2023 mean over $900 back per year.
The stated goal is zero. We are not there yet. The direction has not changed.
The House Finally Has a Sport. Turns Out It's Softball.
For years, the Senate had our number in basketball. Not close. The kind of losses that stick with you. But something shifted when we moved to softball, and Monday night at Dickey-Stephens Park was proof of it. House 7, Senate 6. We found our sport.
The weather had other ideas about my participation; the game got pushed to after our final votes on Wednesday, so I watched from the stands. No regrets. Well, some. But the result helps.
The game raised more than $50,000 for Big Brothers Big Sisters of Central Arkansas and Child Advocacy Centers of Arkansas as part of Homeruns for Kids' Sake. That is the number worth circling. Dickey-Stephens was a good backdrop for a good cause, and the House walked away with bragging rights that will carry us comfortably into next year.
Clips Worth Reading
Arkansas Legislature Convenes Special Session to Cut Individual and Corporate Income Tax Rates (Arkansas Democrat-Gazette)
Google, Entergy Keeping Energy Rate Contract (Arkansas Democrat-Gazette)
Applications Open for Arkansas Rural Telehealth Projects to Receive Federal Funding (Arkansas Advocate)
Broadway Appointed Arkansas State University Three Rivers Interim Chancellor (Arkansas Advocate)
Arkansas General Revenue Collections in April (Arkansas Democrat-Gazette)
Bagels and Budget: Thursday, May 7, 8 to 9:30 AM
Session is over, both the fiscal and the special, and there is a lot to talk through. Come find me Thursday morning at Ozark Mountain Bagel in Downtown Rogers (112 S 2nd St). We will cover what passed, what did not, where the state budget landed, and what the tax cuts mean for District 7 families and businesses. Free, informal, open to anyone who wants to show up and have a real conversation. No RSVP needed.
