Some Arkansas lawmakers are trying to restore a 2013 capital gains tax break that had been scaled back to help pay for a middle class income tax cut earlier this year.
The House Revenue and Taxation Committee on Thursday endorsed a proposal to raise the percentage of a capital gain that is exempt from the income tax. The bill now heads to the full House for consideration.
The proposal is expected to cost the state $6 million in the coming fiscal year and $11 million the following year.
The Legislature repealed part of the tax break as part of the $102 million tax cut Gov. Asa Hutchinson signed into law last month. Hutchinson, a Republican who took office in January, ran on the middle class tax cut proposal.
