Tax Cut Deal Looks Set (updated)

Senate and House leaders have apparently struck a deal to compromise on tax cuts.

Talk Business has learned that in negotiations during the last 24 hours, groups from both chambers have agreed to support the passage of a number of House and Senate measures, including:

SB 274 by Sen. Gilbert Baker (R-Conway) would raise the threshold for the application of the used car tax from $2,500 to $5,000.

SB 275 by Sen. Bill Sample (R-Hot Springs) would provide a tax break for manufacturers on the sales tax paid on their utilities.

SB 276 by Sen. Larry Teague (D-Nashville) would reduce the grocery tax by an additional half-cent, part of the Governor’s legislative package.

HB 1056 by Rep. Uvalde Lindsey (D-Fayetteville) makes technical corrections and provides tax relief for low-income heads of household.

HB 1369 by Rep. Matthew Shepherd (R-El Dorado). The bill would create a sales tax holiday for back-to-school sales.

HB 1421 by House Speaker Robert Moore (D-Arkansas City) to extend and expand geotourism tax incentives in the Delta.

All told, the tax cut measures amount to roughly $37 million in tax breaks.

House Minority Leader Rep. John Burris (R-Harrison) tells Talk Business to "expect movement within the next 24 hours." Senate Revenue and Tax chair Sen. Larry Teague (D-Nashville) plans to reconvene his panel Wednesday afternoon. 

When asked if any votes on pending House bills would take place, Teague said, "I’d be there if I were you."

The House Revenue and Tax Committee could meet as early as Thursday afternoon to consider Senate measures pending in committee. Earlier on Wednesday, HB 1002 by Rep. Ed Garner (R-Maumelle), which would eliminate the capital gains tax, failed in a committee vote in the Senate.

UPDATE: The Senate Revenue and Tax Committee met this afternoon but failed to take up or pass any of the above-listed tax measures. Teague said after the meeting that not all of the details were worked out on an agreement yet.  He did confirm that the 6 bills listed are part of the discussions.

Rep. Burris talks about the negotiations going on behind the scenes and what has been factoring into decisions in this video below.