Governor signs into law military pensions' tax exemption, its offsets

Gov. Asa Hutchinson signed legislation Tuesday that will exempt military retirement benefits from state income taxes and cut the excise tax on soft-drink syrup, starting with the 2018 tax year.

To offset the tax cuts, House Bill 1162 by Rep. Charlene Fite, R-Van Buren, will increase the 1.5 percent state sales tax on candy and soft drinks to 6.5 percent, levy income taxes on unemployment compensation and impose a sales tax on certain digital products.

"We worked hard to make sure that we could pay for it and it would keep within our budget, and we have done that," the Republican governor said before he signed the bill while surrounded by state lawmakers and veterans at a news conference in the Governor's Conference Room.

"I do believe that the legislation will be a significant boost to this state," Hutchinson said.

Read more: http://www.arkansasonline.com/news/2017/feb/08/governor-signs-into-law-military-pensio/