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Governor calls extraordinary session to consider income tax cuts; Senate places SB1 at desk
Summary
Gov. Sarah Huckabee Sanders issued a proclamation convening an extraordinary session to consider lowering top individual and corporate income tax rates; the Senate organized, the secretary read the proclamation, and Senate Bill 1 — described as reducing income tax rates — was placed at the desk and identified for Revenue and Tax review.
The Arkansas governor called an extraordinary session of the General Assembly on Thursday to consider reductions in income tax rates, and the Senate placed a bill at the desk to begin consideration.
Sabrina Lewallen, the secretary of the Senate, read a proclamation from Governor Sarah Huckabee Sanders that convened the 90th General Assembly in Little Rock on May 4, 2026, "to consider and if so advised, enact laws" for specified tax changes. The proclamation said the administration’s fiscal position — including "the state's financial stability, increased economic growth, healthy reserve accounts, and conservative spending policies" — made additional tax reductions possible. It also said the administration had returned $1,500,000,000 to taxpayers in the past three years.
The proclamation set specific rate changes the session will consider: a top individual income tax rate of 3.7% effective Jan. 1, 2026, and a top corporate income tax rate of 4.1% effective Jan. 1, 2027. Lewallen read the governor’s call in the chamber and noted the proclamation was attested by Cole Jester.
"I, Sarah Huckabee Sanders, acting under the authority vested in me as governor of the state of Arkansas ... do hereby call an extraordinary session of the general assembly to convene in Little Rock on 05/04/2026 at 03:00PM," Lewallen read from the proclamation.
At the desk, the secretary announced "Senate bill 1 by senator Dispang et al. To reduce the income tax rates for individuals, trusts, estates, and corporations." Members in the chamber asked if the item belonged to Revenue and Tax; the presiding officer confirmed a Revenue and Tax referral and a committee meeting was scheduled shortly after adjournment.
Senator Bart Hester, president pro tempore, told members the Senate would reconvene at 9 a.m. the following morning and that the chamber expected to move quickly if the House suspended rules. "Members, we'll have session, at 9AM tomorrow morning. Hopefully the house is successful in suspending their rules," Hester said.
Earlier ceremonial business included a prayer led by Senator Hamer and a brief birthday recognition for Senator Mark Johnson by Senator Irvin. Senator Deese addressed members about last week’s House-Senate charity softball game, alleging the House "did cheat" but noting the event raised more than $50,000 for two charities and recognizing Senator Clark Tucker as the game's MVP.
The Senate adjourned until Tuesday, May 5, 2026, at 9 a.m., "subject to clearing of the desk," the presiding officer said.
What happens next: the extraordinary session is convened to consider the tax measures the governor specified; Senate Bill 1 was placed at the desk and identified for the Revenue and Tax committee for further action.
