Governor to receive 2 tax-cut measures

The Senate on Tuesday voted to send the governor bills that would create an income tax exemption of up to $250 for teachers for certain classroom expenses, and exempt from sales taxes charitable organizations that sponsor annual music festivals, concerts, community events and shows.

The Senate approved House Bill 1014 by Rep. Greg Leding, D-Fayetteville, 34-0. The bill would provide an income tax deduction per taxpayer for “qualified classroom investment expenses” for tax years beginning on or after Jan. 1, 2017, according to the state Department of Finance and Administration.

Qualified expenses would include books, school supplies, computer equipment and software, athletic equipment, and food and clothing for teachers’ students. The bill is projected to reduce state general revenue by $430,000 a year in fiscal year 2018 and thereafter, the department said.

The Senate voted 31-0 to approve House Bill 1221 by Rep. Warwick Sabin, D-Little Rock, which would exempt current sales tax collections by charitable organizations that sponsor annual music festivals, concerts, community events and shows.

Products upon which sales taxes are currently collected include T-shirts and event souvenirs; food; soft drinks and water; and sales of alcoholic beverages, including mixed drinks, beer and wine, the finance department said. Other vendors selling at these events would continue to collect sales taxes on their product sales.

The bill is projected to reduce state revenue by $125,000 in fiscal 2018 and $187,000 in fiscal 2019, the finance department said.

— Michael R. Wickline