Ray bill would double Arkansas standard deduction to $4,400, costing state roughly $57.8 million

State Representative David Ray presented House Bill 1066 to raise Arkansas’s personal income tax standard deduction from $2,200 to $4,400 per taxpayer (doubled for married filers), a change the DFNA fiscal note estimated would reduce general revenue by about $57.8 million in fiscal 2027.

Ray said increasing the standard deduction is broad‑based tax relief that would shift many taxpayers away from itemizing and ease compliance. He cited a Tax Foundation table showing Arkansas’s standard deduction ranks among the lowest in states that offer one and told the committee that roughly 895,000 taxpayers would benefit, according to DFNA’s analysis.

Committee members pressed on fiscal tradeoffs. Representative Wooten asked how the state would respond if future revenue declined and whether services would be cut or taxes raised; Ray said the bill was intended to be part of a broader approach to income tax relief and that lawmakers should be “responsible” when reducing revenues. Representative McClure asked about dynamic scoring to estimate growth effects from tax cuts; the committee’s ALC chair (Representative Eves) said the legislature is finalizing a contract with REMY to provide dynamic scoring capabilities in the coming weeks.

Ray closed by asking colleagues to cosponsor the bill; the committee did not take a vote on HB1066 at this hearing.