LITTLE ROCK, Ark. (KTHV) -- The Arkansas Senate has approved a proposal to exempt active duty military in our state from state income taxes. This is the first major tax reduction lawmakers are considering this legislative session.
By a vote of 34-0, the Senate voted Thursday to approve the tax cut proposal.
Officials said it will cost Arkansas about $7.2 million annually and would benefit about 6,300 people in the state.
State finance officials have warned that there's no money in Governor Beebe's proposed budget for additional tax reductions without making cuts in the budget.