(AP) – Arkansas Gov. Asa Hutchinson has signed a bill giving
a tax break to retired military veterans and imposing additional taxes on
digital downloads, treats and unemployment benefits.
The $13 million exemption is intended to boost economic development. Its
supporters hope veterans retire in Arkansas to begin second careers and say
shifting the tax burden to others was necessary to make it happen.
Detractors opposed adding sales taxes on e-books, digital music and ringtones
and making unemployment benefits subject to income taxes. Also under the bill,
soft drinks and candy will now be taxed at the state's full 6.5 percent rate,
rather than a reduced rate imposed on other groceries.
Hutchinson signed the bill Tuesday. He previously approved a $50 million tax
cut benefiting those making less than $21,000 a year.
a tax break to retired military veterans and imposing additional taxes on
digital downloads, treats and unemployment benefits.
The $13 million exemption is intended to boost economic development. Its
supporters hope veterans retire in Arkansas to begin second careers and say
shifting the tax burden to others was necessary to make it happen.
Detractors opposed adding sales taxes on e-books, digital music and ringtones
and making unemployment benefits subject to income taxes. Also under the bill,
soft drinks and candy will now be taxed at the state's full 6.5 percent rate,
rather than a reduced rate imposed on other groceries.
Hutchinson signed the bill Tuesday. He previously approved a $50 million tax
cut benefiting those making less than $21,000 a year.
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