TO AMEND THE INCOME TAX LAWS RELATING TO CERTAIN TRUSTS; TO PRESERVE CERTAIN TRUST ASSETS; AND TO EXEMPT CERTAIN TRUSTS FROM INCOME TAX.

Senate Bill 233 proposed to amend Arkansas income tax laws by creating an exemption for certain trusts. The bill would have exempted "nongrantor trusts," as defined by federal tax law, from state income tax if they were administered by an Arkansas resident trustee. This measure aimed to encourage Arkansas residents to keep their trust assets within the state and to attract out-of-state trust assets, thereby boosting the state's financial services sector. If passed, it would have affected trusts and their beneficiaries by removing state-level income tax obligations for qualifying trusts starting in 2025.