An act TO AMEND THE LAW CONCERNING THE INCOME TAX 10 EXEMPTION FOR RETIREMENT BENEFITS, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                     A Bill
2 95th General Assembly

3 Regular Session, 2025                                           HOUSE BILL 1787

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5 By: Representative Warren

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8                            For An Act To Be Entitled

9            AN ACT TO AMEND THE LAW CONCERNING THE INCOME TAX

10           EXEMPTION FOR RETIREMENT BENEFITS; TO PROVIDE AN

11           INCOME TAX EXEMPTION FOR CERTAIN RETIREMENT BENEFITS

12           RECEIVED BY LAW ENFORCEMENT OFFICERS AND

13           FIREFIGHTERS; AND FOR OTHER PURPOSES.

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16                                      Subtitle

17                       TO PROVIDE AN INCOME TAX EXEMPTION FOR

18                       CERTAIN RETIREMENT BENEFITS RECEIVED BY

19                       LAW ENFORCEMENT OFFICERS AND

20                       FIREFIGHTERS.

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22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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24      SECTION 1. Arkansas Code � 26-51-307(e) and (f), concerning the income

25 tax exemption for retirement or disability benefits, are amended to read as

26 follows:

27      (e)(1) The following are exempt from the income tax imposed under this

28 chapter:

29                       (A) Retirement benefits received by a member of the

30 uniformed services from any of the uniformed services identified in

31 subdivision (e)(2) of this section; and

32                       (B) Survivor benefits that are funded by the retirement

33 pay of a member of the uniformed services;

34                       (C) Retirement benefits received by a retired law

35 enforcement officer based on his or her service as a law enforcement officer;

36 and

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1                 (D) Retirement benefits received by a retired firefighter

2 based on his or her service as a firefighter.

3   (2) As used in this subsection,: "member

4                 (A) "Firefighter" means a:

5                        (i) Certified firefighter with a municipal or

6 volunteer fire department in the state; or

7                        (ii) Firefighter with the Arkansas National Guard;

8                 (B) "Law enforcement officer" means a:

9                        (i) Certified law enforcement officer who is:

10                             (a) A police officer with a municipal police

11 department in the state;

12                             (b) A county sheriff or deputy sheriff of a

13 county in the state;

14                             (c) A member of the police force of the

15 Division of Arkansas State Police;

16                             (d) A member of the uniformed personnel of the

17 Arkansas Highway Police Division of the Arkansas Department of

18 Transportation; or

19                             (e) An employee of an agency or department of

20 the state; or

21                       (v) An officer of a state or local detention

22 facility in the state; and

23                (C) "Member of the uniformed services" means a retired

24 member of any of the following:

25                       (A)(i) The United States Army, the United States

26 Marine Corps, the United States Navy, the United States Air Force, or the

27 United States Coast Guard;

28                       (B)(ii) A reserve component of any of the United

29 States Armed Forces listed in subdivision (e)(2)(A) of this section;

30                       (C)(iii) The National Guard of any state;

31                       (D)(iv) The commissioned regular or reserve corps of

32 the United States Public Health Service; or

33                       (E)(v) The National Oceanic and Atmospheric

34 Administration Commissioned Officer Corps.

35  (f)(1) Except as provided in subdivision (f)(2) of this section, a

36 taxpayer claiming an exemption under subsection (e) of this section is not

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1 eligible for an exemption under subsection (a) of this section.

2   (2) A taxpayer claiming an exemption of less than six thousand

3 dollars ($6,000) for income from military retirement, law enforcement

4 retirement, firefighter retirement, or survivor benefits under subsection (e)

5 of this section may claim as exempt additional retirement benefits under

6 subsection (a) of this section in an amount equal to the difference between

7 the exemption claimed under subsection (e) of this section and six thousand

8 dollars ($6,000).

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10  SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective for tax

11 years beginning on or after January 1, 2026.

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